Home prices could fall in major cities as Americans sour on urban living, says Nobel Prize-winning economist Robert Shiller
The coronavirus pandemic has many Americans heading for the hills — or the suburbs, as it were. And home prices in cities could decline as a result, says Nobel Prize-winning economist Robert Shiller.
In an interview with CNBC, Shiller outlined the broad risk to the economy posed by the spread of the novel coronavirus and the resulting impact on the global economy.
Where housing is concerned though, the impact of a decline wouldn’t be felt equally across all markets. Rather, Shiller laid out a worst-case scenario for urban markets around the U.S.
“What’s nice about the city? It’s good restaurants, theaters, museums, art shows,” he said. “But if you’re afraid of people because you think you might catch something in the next epidemic then it may color your whole feeling about the city.”
In addition to that fear, many employers have embraced remote working amid the coronavirus pandemic. Facebook, has said it will ramp up hiring remote workers, while other firms have given workers the option to continue working from home indefinitely amid the pandemic. There’s even a “work-from-home” ETF that’s aiming to capitalize on the trend.