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The COVID-19 Pandemic and the Rental Market: Evidence From Craigslist
John Kuk1, Ariela Schachter2, Jacob William Faber3
1University of Oklahoma, Norman, OK, USA.
The American Behavioral Scientist
|April 11, 2024
Summary
The COVID-19 pandemic decreased rental housing prices in Black, Latino, and diverse neighborhoods. However, rents increased in majority White neighborhoods, highlighting existing sociospatial inequalities.
Area of Science:
- Socioeconomics
- Urban Studies
- Public Health
Background:
- Economic shocks and environmental disasters disproportionately affect minority and low-income communities.
- The COVID-19 pandemic has exacerbated existing social and spatial inequalities.
Purpose of the Study:
- To analyze the impact of the COVID-19 pandemic on the US rental housing market.
- To investigate the racial and spatial disparities in rental price changes during the pandemic.
Main Methods:
- Utilized a unique dataset of new rental listings from Craigslist.
- Employed localized measures of pandemic severity across 49 major US metropolitan areas.
- Analyzed median and mean rent changes from mid-March to early June.
Main Results:
- Local COVID-19 spread correlated with reduced median and mean rents.
- Rent declines were concentrated in Black, Latino, and diverse neighborhoods.
- Rents increased in majority White neighborhoods during the same period.
Conclusions:
- The COVID-19 pandemic has amplified sociospatial inequalities within the rental housing market.
- Online data sources are valuable for housing market analysis.
- Pandemic's effects on rental markets may have long-term implications for inequality.
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