The COVID-19 pandemic induced an increase in both the amount of time that households
spend at home and the share of expenditures allocated to at-home consumption. These
changes coincided with a period of rapidly rising house prices. We interpret these facts as
the result of stay-at-home shocks that increase demand for goods consumed at home as
well as the homes that those goods are consumed in. We first test the hypothesis empirically
using US cross-county panel data and instrumental variables regressions. We find that …