The key question is the durability of any behavioural changes, say Capital Group’s investment team
Research suggests that the remote working revolution prompted by Covid-19 will outlast the pandemic, at least if workers have their say - with responses to some surveys in the US indicating that the vast majority who can work remotely would like to do so at least one day a week.
If this shift away from city living gathers momentum longer term, it could have a marked impact on economies, financial markets and the future of large cities. "From an investment perspective, we need to determine how durable these changes are, how they could affect consumer spending patterns and how companies may respond," Capital Group economist Jared Franz says.
This post was funded by Capital Group