Ilona Dielen (Université Côte d’Azur) – Is Green the New Black? The Role of Remote Work on Local Housing Price in the Post COVID-19 Era

Between  2019 and 2021, real estate prices in cities with greater tree cover (green cities) increase by an average of 9\%, compared to only 3\% in non-green cities. Remote working  has expanded the traditional criteria for workers’ location choices, with environmental quality and its accessibility becoming important factors.  This study analyzes the impacts of remote work on French real estate prices in the post Covid era, focusing on how natural amenities influence city selection.  Using unique data on cities’ green coverage  and remote work, the study’s findings confirm the theoretical predictions  that post-pandemic remote workers choose greener locations when they relocate. Our analysis subsequently reveals a significant influence of remote worker migration on house price growth in cities offering natural amenities. This trend is mainly attributed to skilled workers relocating to areas with higher environmental quality. We conclude that work-from-home (WFH) exerts upward pressure on housing prices in greener cities, which is symptomatic of an environmental gentrification of these cities, making them less affordable for non-remote workers and thus supporting a double inequality.