The True Costs of Working From Home

The True Costs of Working From Home
(AP Photo/Christophe Ena)
A Craigslist search for one-bedroom apartments in San Francisco pulls up a post for a work-from-home special: a NoPa flat for $1,200 a month. But the sunny studio unit is “day-use only” — the target tenant is someone doing remote jobs from home who wants a whole other apartment dedicated to teleworking. And who’s willing to pay for it.

As some employers consider remote-forever policies, there have been a few attempts to quantify the economic impacts of this digital turn away from the office. The focus tends to be on what the move might cost (or save) employers, in terms of productivity or salaries. Other research has delved into the savings, in gas, time and carbon emissions, from Covid-altered commuting regimes. 

But a new working paper distributed by the National Bureau of Economic Research looks at another, hidden cost: Employees who find themselves without an office tend to increase their own spending — on more room. Or, more rooms. About 0.3 to 0.4 more rooms, to be exact.

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