By Sam van de Schootbrugge 09-06-2021
In: deep-dives | Economics

The End of Financial Districts?

(4 min read)
Resize text:


Until now, digitalisation has coincided with substantial growth in ‘superstar’ cities. However, the pandemic has shown that working from home (WFH) is feasible and, for many, has gone better than expected. And so, will the unexpected transition to remote work lead to a permanent reallocation of employment opportunities across regions?

To answer this question, a new NBER working paper examines migration patterns and housing and rental prices within and across US cities during the pandemic. Specifically, the authors determine whether Covid-19 has moved individuals away from the cities in which they work, thereby making it more likely that the full-time WFH model will persist. In doing so, they look at Zillow and US Postal Service (USPS) data to find:

TO READ THIS DEEP DIVE
SUBSCRIBE TO MACRO HIVE PRIME

£39/month thereafter

For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers

START YOUR FREE TRIAL


MOST READ

Homebuilders Are in A Sweet Spot (5 min read)

By John Tierney | Jun 03, 2021
The latest housing data was a source of both relief and worry. The relief is because slowing home sales perhaps indicate the US is...

2H Outlook: The Pause That Refreshes (10 min read)

By Jay Pelosky | Jun 01, 2021
As we approach midyear, Covid Speed’s breakneck pace seems to have slowed. Cross-asset markets have paused, with stable stocks, bonds...

Be Careful, Inflation Expectations Are Unanchored! (6 min read)

By Sam van de Schootbrugge | Jun 02, 2021
The Covid-19 crisis triggered a sharp reversal of capital flows to Emerging Market Economies (EMEs). Also known as a sudden stop...

PREMIUM CONTENT

Precious Metals Poised for a Historic Rally (5 min read)

By John Butler | May 25, 2021
Summary Multiple fundamental factors are coming together…

US