The economics of why work from home favors the suburbs

The cost of commuting drops dramatically when you’re only walking a few feet from the bedroom to the home office. Such savings in time and money have prompted many people to take their work-from-home flexibility and relocate to cheaper, more spacious homes farther away from the city centers where their jobs may have been based in the past. This pandemic-induced movement has, in turn, disrupted housing markets across the country, with prices rising in some cities and falling in others. Jan Brueckner, a distinguished professor of economics at UCI, recently conducted an economic analysis of the effects of work from home policies on housing markets. In this episode of the UCI Podcast, Brueckner discusses the forces that traditionally shape housing markets, why work from home has been so disruptive, and why these corporate policies might lead to more suburban sprawl.