When high-income remote workers left New York and San Francisco, low-wage workers paid the price and lost hours. But here's one silver lining: Rents decreased.
People who can do their jobs remotely fled U.S. cities during the pandemic, and the low-skill workers who were left behind bore the brunt of the economic fallout — but that trend came with a silver lining.
At the same time, this population shift had a side effect on cities’ housing markets. As high-skill workers left their city residences permanently amid the pandemic, cities with the highest share of these workers saw the sharpest declines in local rental prices. That drop in rental prices continued throughout 2020 and into January 2021, the researchers found.
“High-skill service workers’ flight into their homes and to locations outside big, dense cities had adverse consequences for the urban economies they left behind,” the authors wrote. “ While these high-skill workers can now enjoy more flexibility around where they live, ‘low-skill service workers will suffer from their dependence on local demand in a more footloose world.’ ”
A ‘more hopeful’ implication But researchers also highlighted a “more hopeful” implication “that the transition to remote work could alleviate the pressure on big cities’ housing markets.” High-skill workers showed both a willingness and an ability to relocate during the pandemic, and rents in big cities declined as a result.
Working remotely “doesn’t work for people who want to hustle, doesn’t work for culture, doesn’t work for idea generation,” Dimon said in May at a Wall Street Journal CEO Council event, before delta became the dominant form of SARS-CoV-2 in the U.S. “By September it will look just like it did before.” He added, “We are getting blowback about coming back internally, but that’s life.”
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