Working from home and long-term housing wealth inequality in large cities of advanced economies

ABSTRACT

Purpose>The purpose of this study is to explain the potential long-term impacts of working from home on housing wealth inequality in large cities of advanced economies.Design/methodology/approach>This study is descriptive research and It supports the arguments by providing some emerging evidence from property markets in developed countries.Findings>The authors argue that due to the unique nature of the COVID-19 crisis, it will have a different and long-term impact on housing wealth inequality. Changes in the working arrangements of many professionals will change the housing demand dynamic across different suburbs and may lead to a reduction of the housing wealth gap in the long term. In this paper, the authors propose five mechanisms that may impact housing wealth inequality.Research limitations/implications>Long-term data is required to test the proposed conceptual model in this study and the effect of the COVID-19 pandemic on housing wealth across and within suburbs of large cities.Practical implications>Policymakers and regulators may benefit from the discussions and suggestions provided in this study and consider the proposed avenues on how new changes in the working environment (remote working) may result in a reduction of housing wealth inequality.Originality/value>This study presents a new perspective about the potential long-term impacts of working from home that is posed by the COVID-19 pandemic on housing wealth inequality in large cities of developed economies.