Mondragon and Wieland (2022). We find that the shift to distant work accounts for more than half of general house value growth over the pandemic. Our results counsel that rising house prices over the pandemic reflected a change in fundamentals quite than a speculative bubble. This suggests that the evolution of remote work could also be an essential determinant of future housing costs and inflation. Following the spread of the COVID-19 pandemic, remote work elevated dramatically throughout the whole nation. Figure 1 shows that the share of work being finished from home-either absolutely distant or hybrid-elevated from a pre-pandemic stage of around 5 Step Formula% to about 60% in spring 2020. After falling in early 2021, the share appears to have stabilized to close to 30% as of August 2022. However, distant work varies substantially across cities, which can help us understand the impact distant work has had on housing markets. Source: Barrero, Bloom, and Davis (2021), with updates available online. For this study, we consider a measure of cities and towns known as core-primarily based statistical areas (CBSAs), that are county groups constructed round inhabitants centers and adjoining counties related by commuting.

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Pub: 08 Aug 2025 06:42 UTC

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