Fiber broadband, geography of work, and digital premium gaps: evidence from housing market responses

Abstract Using the universe of housing transactions in England and Wales between 2008 and 2017, we measure the perceived value of fiber broadband to homebuyers. We exploit the discontinuity across the boundary of areas that were fiber-enabled in different years and find a house price premium of 0.7 per cent. The effect is strongest in London and other major cities, particularly in high-income, high-skill areas. Within major cities, comparing areas that are in the same income tier, we find that areas with a higher proportion of skilled workers show a larger response to fiber.