The pandemic triggered an exodus from large cities in both the UK and US as households used the freedom of remote work to move to cheaper locations with larger homes. In the rental market, that trend has largely reversed, with younger households valuing the benefits of living in a large city beyond proximity to the office. But house prices have seen a more sustained divergence, as lower commute costs have increased the attractiveness of buying a home further afield. Given remote work is here to stay, we suspect that lower premium on homes in large cities will also largely be sustained.
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