The Effects of COVID-19 on Downtown Land Use: Evidence from Austin and Los Angeles

This paper charts the diverging responses of different real estate sectors to the COVID-19 pandemic—and the implications for the spatial allocation of activity across metropolitan areas. Using local data from both Austin and Los Angeles, it documents sustained shifts in rents and vacancy rates that are putting pressure on cities to reconsider the highest and best use of much of their land. It concludes by proposing a four-pronged framework to facilitate adaptation to the new needs of the post-pandemic population: redevelopment, rezoning, reuse, and resilience.