Post-COVID Trends in Working from Home and Property Prices

The impact of remote work on city structure and property prices has received a lot of attention since the COVID-19 pandemic, but more evidence is needed for developing country’ metropolises. This study addresses this gap by investigating the enduring effects of work-from-home (WFH) trends on urban structure and property prices in the Buenos Aires Metropolitan Region (BAMR), a major Latin American urban area. We utilize novel data sources, combining high-resolution cell phone mobility data with property listings to track changes in work patterns and their impact on the urban structure from 2019 to 2023.

Our analysis reveals a significant flattening of the rent-distance gradient, with elasticity decreasing 40 percent before and after the pandemic. Much of this flattening is due to changes in WFH patterns. Once we include this determinant in the estimations, the role of distance in explaining the variations in rents (adjusted for house characteristics) is significantly diminished. We discuss the implications of these changes in land use and prices for tax policy in local governments.