The Impact of the COVID-19 Pandemic on the Demand for Density: Evidence from the U.S. Housing Market

29 Pages Posted: 3 Aug 2020 Last revised: 11 Apr 2021

See all articles by Sitian Liu

Sitian Liu

Queen's University - Department of Economics

Yichen Su

Federal Reserve Bank of Dallas

Multiple version iconThere are 2 versions of this paper

Date Written: April 11, 2021

Abstract

We study the impact of the COVID-19 pandemic on the location demand for housing. We find that the pandemic has led to a shift in housing demand away from neighborhoods with high population density. The reduced demand for density is driven partially by the diminished need for living close to telework-compatible jobs and the declining value of access to consumption amenities. Neighborhoods with high pre-COVID-19 home values also see a greater drop in housing demand. We also find significant shift in housing demand away from large cities, though the magnitude is smaller.

Keywords: COVID-19, Pandemic, Density, Housing, Telework, Amenity

JEL Classification: R2, R3, I1

Suggested Citation

Liu, Sitian and Su, Yichen, The Impact of the COVID-19 Pandemic on the Demand for Density: Evidence from the U.S. Housing Market (April 11, 2021). Available at SSRN: https://ssrn.com/abstract=3661052 or http://dx.doi.org/10.2139/ssrn.3661052

Sitian Liu

Queen's University - Department of Economics ( email )

94 University Avenue
Kingston, Ontario K7L 3N6
Canada

HOME PAGE: http://www.sitian-liu.com

Yichen Su (Contact Author)

Federal Reserve Bank of Dallas ( email )

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

HOME PAGE: http://https://sites.google.com/site/yichensu89/

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