Skip to content
Opinion
Conor Sen

Inflation’s Silver Lining for Housing and Offices

Rising prices will help some real estate markets avert a much worse potential outcome in a post-pandemic world.

Inflation isn’t the worst thing that could have happened to San Francisco real estate.

Inflation isn’t the worst thing that could have happened to San Francisco real estate.

Photographer: David Paul Morris/Bloomberg via Getty Images

It’s painful when prices are soaring for everything, but there are at least two segments of the real estate market where inflation may actually be easing the transition to a new status quo.

As the U.S. embarks on its third year following the arrival of Covid-19, there are clear winners and losers arising from how the pandemic has changed the ways we live. One big loser has been residential real estate in high-cost communities as people have taken advantage of remote work to flee dense urban centers and move to lower-cost places. The second loser, also stemming from the remote-work phenomenon, has been office buildings as employers and workers wrestle with what the future of work will look like.