Does telecommuting influence homeownership and housing choice? Evidence based on pre-pandemic data

Abstract

Telecommuting has become widespread during the pandemic and are expected to become mainstream work culture in the post-pandemic era. By applying a three-step Instrumental Variable analysis to the 2009 and 2017 U.S. National Household Travel Surveys, this study analyzes the impact of telecommuting on homeownership and housing type choices. Results show that, households with telecommuters are more likely to be homeowners and to live in detached or duplex houses compared to their counterparts. These effects are especially prominent for middle-aged (30–55) households. Relying on robust and national representative historical data before the COVID-19 pandemic, this study provides convincing evidence on how telecommuting affects people’s housing decisions and thus has important implications for understanding the fast-evolving housing markets in the post-pandemic era when a growing number of telecommuters look for homeownership and extract spaces to accommodate home office. It will provide important guidance for revisiting existing housing policies for both urban and rural policymakers to meet the new demand and preferences.