The cost of commuting drops dramatically when you’re only walking a few feet from the bedroom to the home office. Such savings in time and money have prompted many people to take their work-from-home flexibility and relocate to cheaper, more spacious homes farther away from the city centers where their jobs may have been based in the past. This pandemic-induced movement has, in turn, disrupted housing markets across the country, with prices rising in some cities and falling in others.

Jan Brueckner, a distinguished professor of economics at UCI, recently conducted an economic analysis of the effects of work from home policies on housing markets. In this episode of the UCI Podcast, Brueckner discusses the forces that traditionally shape housing markets, why work from home has been so disruptive, and why these corporate policies might lead to more suburban sprawl.

The economics of why work from home favors the suburbs

About the University of California, Irvine: Founded in 1965, UCI is the youngest member of the prestigious Association of American Universities and is ranked among the nation’s top 10 public universities by U.S. News & World Report. The campus has produced three Nobel laureates and is known for its academic achievement, premier research, innovation and anteater mascot. Led by Chancellor Howard Gillman, UCI has more than 36,000 students and offers 224 degree programs. It’s located in one of the world’s safest and most economically vibrant communities and is Orange County’s second-largest employer, contributing $7 billion annually to the local economy and $8 billion statewide. For more on UCI, visit www.uci.edu.