The Donut Effect: How Remote Work is Reshaping Urban Housing Demand in Major Metropolitan Areas
A For over a century, the economic and social geography of major cities was defined by a predictable daily ritual: the commute. Millions of workers would travel from residential suburbs to a dense Central Business District (CBD) for work, and return in the evening. This model, which concentrated corporate headquarters, professional services, and high-value retail in a small urban core, was the primary driver of urban planning and real estate valuation. The premium placed on housing with convenient access to these CBDs was a fundamental assumption of the property market. However, the global pandemic triggered an unprecedented and rapid shift towards remote work, fundamentally challenging this long-standing paradigm and giving rise to a new phenomenon in urban economics. B This emerging trend has been termed the ‘Donut Effect’ by economists, including those from Stanford University. The me...
Topic: The Influence of Remote Work on Urban Housing Demand · 801 words · intermediate