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

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