Speaker:  C. Jack Liebersohn (UC – Irvine)

Paper Title: “The Short- and Long-Run Effects of Remote Work on U.S. Housing Markets”

Abstract: Remote work has increased the demand for housing and changed the demand for the location of that housing. Because housing supply is heterogeneous across space and more elastic in the long-run, the effects on rents and populations may differ over time. We use the lens of a spatial housing model with heterogeneous housing supply elasticities to identify the housing and location demand changes from 2020-2022, and show that the same shocks will have a different effects in the long run. We estimate that migration to more housing elastic areas will lower average rents by 0.5 percentage points, and cause a 1.8 percentage point fall in the housing component of CPI. Furthermore, the long-run effects of the increase in housing demand will be 3.7 percentage points less than the short-run effects.

Paper Link: https://eig.org/wp-content/uploads/2022/11/The-Short-and-Long-Run-Effects-of-Remote-Work-on-U.S.-Housing-Markets.pdf

Registration Link: https://us06web.zoom.us/webinar/register/WN_7nFAS9XWQBmqhIhwgURl9g