Covid Made London and Paris Cheaper — for the Rich

Covid Made London and Paris Cheaper — for the Rich

Betting on the “death of the city” after Covid always looked extreme — Classical Athens survived far worse plagues and disasters. Yet places like London and Paris are once again having to confront the risk of hardening into enclaves for the rich.

Even as the scars of past lockdowns keep tourism subdued and some workers in far-flung locales, house prices in European cities are as bubbly as they were before Covid. Real estate in London and Paris may be underperforming the Zoom-friendly suburbs, but they’re still far from affordable. A highly-skilled worker needs 16 years to save for a 60-square-meter apartment in Paris, according to UBS. Meanwhile, in London’s priciest neighborhoods, rents are back to pre-pandemic levels. Mortgage rates have sunk in both markets.

Yes, remote work has decreased demand for office space, and should eventually soften housing demand too, but it’s not happening yet. Plus, look at city streets and you’ll see how the splendid isolation of the elite, suburban “Zoomocracy” is already starting to backfire: The shift to “hybrid” home and office working has drivers commuting into town at ever more random times. Traffic congestion over the past month in Paris and London has been even worse than the comparable