Study found remote work shift increase housing prices in the US.
The Department of Economics at the University of California published a recent study about remote work and housing prices. According to their findings, remote work shift led to a 23.8% increase in US housing prices between 2019 and November 2021.
During the pandemic, most Americans moved away from big cities to settle in more affordable locations while working remotely. And most workers were able to buy a house thanks to the flexibility of working from home.
However, a recent Gallup poll found that only 30% of Americans think it’s a good time to buy a house. On average, housing costs take a third of a family’s income. These costs increased by 5.1% in the past year. The Labor Department indicates the fastest annual rice since 1991.
And this recent study shows a correlation between remote work shift and estate prices in the US. According to Redfin RDFN, -9.37%, home prices reached a medium price of $424,824 – + 15.6%/year in April. Houses were sold for 545,706, a decline of 13.2% from the previous year.
As researchers claim: “Using variation in remote work exposure across US metropolitan areas, we estimate that an additional percentage point of remote work causes a 0.93% increase in house prices after controlling for negative spillovers from migration. This cross-sectional estimate combined with the aggregate shift to remote work implies that remote work raised aggregate US house prices by 15.1%.”
The remote work shift is leading to several changes in our habits, from tourism strategies to housing prices.