Flattening the Curve: Pandemic-Induced Revaluation of Urban Real Estate

Stijn Van Nieuwerburgh, Arpit Gupta, Vrinda Mittal and Jonas Peeters

No 16080, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We show that the COVID-19 pandemic brought house price and rent declines in city centers, and price and rent increases away from the center, thereby flattening the bid-rent curve in most U.S. metropolitan areas. Across MSAs, the flattening of the bid-rent curve is larger when working from home is more prevalent, housing markets are more regulated, and supply is less elastic. Housing markets predict an urban revival with urban rent growth exceeding suburban rent growth for the foreseeable future, as working from home recedes.

Keywords: Covid-19; Land values; Bid-rent function; Working from home (search for similar items in EconPapers)
JEL-codes: R12 R23 R51 (search for similar items in EconPapers)
Date: 2021-04
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Journal Article: Flattening the curve: Pandemic-Induced revaluation of urban real estate (2022)
Working Paper: Flattening the Curve: Pandemic-Induced Revaluation of Urban Real Estate (2021)
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