Abstract

A distinguishing characteristic of the COVID-19 economic crisis is the unprecedented decline in human mobility. This thesis aims to examine the effect of the pandemic on housing and rental prices in the United States. Using 315 Metropolitan Statistical Areas (MSAs), I calculate their respective real estate market’s exposure to mobility changes, the increase in work-from-home (WFH), and the increase in state mandates to combat the virus’ spread. Additionally, I document whether MSAs dominated by Blacks, Latinos, and Hispanics are affected more than others. I find that as mobility decreases by 1%, there is a 0.07% and 0.3% decrease in housing and rental prices, respectively. The increase in WFH and state stringency positively affect the overall housing prices but does not affect the rental prices. I also find that the minority-dominated MSAs have a significant and negative impact from the pandemic for both prices.