COVID-19 and the housing market. Evidence from England and Wales, and France

This paper examines the effect of the Covid-19 pandemic on the housing market. The study is based on a vast dataset comprising 10, 194, 053 residential transactions in England and Wales, and 6, 620, 284 in France, spanning in both cases the pre-Covid and Covid-19 periods. The analysis centres on how the Covid-19 outbreak and subsequent prolonged lockdowns led to significant changes in the geography of housing in these countries. The findings reveal that the pandemic triggered a notable shift in the geographical distribution of transactions. There was an acceleration of the reversal of the long-standing trend of transaction concentration in large urban centres, with a notable increase in transactions occurring in smaller and more remote areas, especially in small cities, towns, and rural regions. These places offered a more desirable living environment during the pandemic. However, the analysis highlights important differences between the countries. In England and Wales, residential transactions were markedly influenced by the availability of amenities, while in France, new transaction patterns were primarily driven by price considerations.