Half Of Housing Price Increase Driven By Shift To Remote Work
Since 2019, house prices have increased nearly 24%. Most of which growth can be attributed to the work-from-home protocols COVID implemented.
According to National Mortgage Professional, among the findings, the report:
- Identifies a large effect of the shift to remote work on house-price growth in a cross-section of U.S. micro- and metropolitan areas using pre-existing exposure to the propensity for remote work. It found similarly-sized effects of remote work on residential rent-price growth.
- Isolates the effect of remote work on house prices from the overall effects on demand caused by migration, stating that migration accounts for one-third of the total effect of remote work on house prices. “Extrapolating from the remaining two-thirds implies that the shift to remote work accounts for at least half of the total increase in aggregate home prices.”
