Is there a diminishing value of urban amenities as a result of the Covid-19 pandemic?

Abstract

We investigate whether the Covid-19 pandemic decreased the willingness to pay for urban amenities such as restaurants, cinemas and theaters. We do this by using a hedonic pricing model in combination with a time-gradient difference-in-difference approach. We use a data set that contains virtually all apartments for sale in the larger Stockholm area. We use a very detailed and exible de nition of density of urban amenities based on the exact location of these amenities and the walking distance from the apartments to these amenities. We nd a decrease of 1.9 percent of apartments that we label as amenity rich.