Journal article

Work from Home and Urban Structure

Year:

2023

Published in:

Built Environment
Commuting
Spatial Equilibrium
Urban
Work from home

The sustained increase in working from home in the wake of Covid has the potential to reshape the US urban landscape. This article describes the big picture of pre2020 remote work in the US and summarizes how that picture changed during the subsequent three years. It then introduces a mathematical model designed to calculate the possible long-run impacts of increased remote work on where and how Americans work and live. This model predicts that the increased prevalence of remote and hybrid work arrangements will induce workers with remote-capable jobs to find housing farther away from their job locations, increasing the length of the average commute while cutting the time actually spent commuting. Jobs that produce goods and services which must be consumed locally will follow the bulk of the population to suburbs and smaller cities, while jobs producing tradable output will increase both in low-cost and high-productivity locations, at the expense of the middle. In the long run, the reallocation of demand to lower density locations with fewer legal restrictions on housing development should reduce the real price of housing by at least 1 per cent, but these changes depend on adjustments to the housing stock, both through new construction and through re-purposing commercial real estate in city centres. The model predicts a partial reversal of the decades-long concentration of talent and income in the centres of the biggest cities. Data on changes 2019–2022 suggest that some of this reversal is already happening.

Other publications by

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Publisher: SSRN

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Publisher: Journal of Urban Economics

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Scientists Without Borders: Lessons From Ukraine

Publisher: GigaScienc

Authors: Andrii Parkhomenko, Walter W. Wolfsberger, Karishma Chhugani, Khrystyna Shchubelka, Alina Frolova, Yuriy Salyha, Oksana Zlenko, Mykhailo Arych, Dmytro Dziuba, Volodymyr Smolanka, Zeynep H Gümüş, Efe Sezgin, Alondra Diaz-Lameiro, Viktor R Toth, Megi Maci, Eric Bortz, Fyodor Kondrashov, Patricia M Morton, Paweł P. Łabaj, Veronika Romero, Jakub Hlávka, Serghei Mangul, Taras K. Oleksyk

2022
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Effective And Feasible Mechanisms To Support Ukrainian Researchers And Students At Risk: Opportunities, Challenges And Pitfalls

Publisher: OSF

Authors: Andrii Parkhomenko, Karishma Chhugani, Alina Frolova, Yuriy Salyha, Oksana Zlenko, Sanita Reinsone, Walter W. Wolfsberger, Oleksandra V. Ivashchenko, Megi Maci, Dmytro Dziuba, Eric Bortz, Fyodor Kondrashov, Paweł P. Łabaj, Veronika Romero, Jakub Hlávka, Taras K. Oleksyk, Serghei Mangul

2023
Journal article

Local Causes And Aggregate Implications Of Land Use Regulation

Publisher: Journal of Urban Economics

Authors: Andrii Parkhomenko