published journal article

A New Spatial Hedonic Equilibrium in the Emerging Work-from-Home Economy?

American Economic Journal: Applied Economics

Publication Date

April 1, 2023

Author(s)

Jan Brueckner, Matthew E. Kahn, Gary C. Lin

Abstract

This paper studies the impacts of work from home (WFH) in the housing market from both intercity and intracity perspectives. Our results confirm the theoretical prediction that WFH puts downward pressure on housing prices and rents in high-productivity counties, a result of workers starting to relocate to cheaper metro areas during the pandemic without forsaking their desirable jobs. We also show that WFH tends to flatten intracity house-price gradients, weakening the price premium associated with good job access. (JEL J24, J31, J61, R21, R23, R31)

Suggested Citation
Jan K. Brueckner, Matthew E. Kahn and Gary C. Lin (2023) “A New Spatial Hedonic Equilibrium in the Emerging Work-from-Home Economy?”, American Economic Journal: Applied Economics, 15(2), pp. 285–319. Available at: 10.1257/app.20210190.