Home Buyers Remain in Large Metropolitan Statistical Areas Despite COVID-19

Abstract

The onset of the COVID-19 pandemic generated concerns over the pandemic's implications for the housing market, especially in large metropolitan statistical areas. The pandemic was expected to result in downward pressure on home prices as lockdowns led to unemployment which could have translated to delinquencies, foreclosures, and distressed home sales. Fortunately, that scenario did not materialize, and thus far the housing market in large urban areas, as well as elsewhere, has maintained its health throughout the pandemic crisis. Nevertheless, much has been written in the news about the "urban exodus" and its potential impact on housing demand and home prices in large metropolitan areas. This paper examines mortgage data reported under the Home Mortgage Disclosure Act (HMDA) for evidence supporting the claim of movement away from large metropolitan statistical areas in 2020.

Author:

Christian Malagon