Expanding the doughnut? Spatial changes in housing demand since the rise of remote work

This paper analyses changes in preferences for residential locations in metropolitan areas of 16 Organisation for Economic Co-operation and Development (OECD) countries, following the COVID-19 pandemic and rise in remote working. We show that house prices have grown faster outside central locations of metropolitan areas, suggesting less frequent, but longer, commuting. House prices in rural settlements increased the most within the commuting zones of metropolitan areas, while smaller cities became more attractive in further away locations. Results are coherent with an increased attractiveness of suburban life relative to downtown and, at the same time, an expansion of metropolitan labour markets.