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How Does COVID-19 Affect House Prices? A Cross-City Analysis

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  • Bingbing Wang

    (Department of Finance, Law and Real Estate, California State University Los Angeles, Los Angeles, CA 90032, USA)

Abstract

Using individual level transaction data and a revised difference-in-differences method with nonparametric smoothing, we study the effect of COVID-19 on house prices. The analyses are performed on the areas of Houston, Santa Clara, Honolulu, Irvine, and Des Moines in the US, which vary in the economic features and the implementation of stay home orders. The results show that only Honolulu experienced noticeable house price declines from the outbreak, suggesting that a heavier reliance on service industries might be correlated with higher vulnerabilities. Santa Clara and Irvine lead the house price increase rates, followed by Des Moines and Houston, indicating that stronger housing market fundamentals, better amenities and less dependence on service industries are associated with more positive house price effects.

Suggested Citation

  • Bingbing Wang, 2021. "How Does COVID-19 Affect House Prices? A Cross-City Analysis," JRFM, MDPI, vol. 14(2), pages 1-15, January.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:2:p:47-:d:486223
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    3. Katafuchi, Yuya, 2021. "Residential land price fluctuations caused by behavioral changes on work-from-home based on COVID-19," MPRA Paper 109310, University Library of Munich, Germany.
    4. Frederik Schröder, 2023. "Linkages Between Property Prices and Macroeconomic Determinants: Evidence from Germany," ACTA VSFS, University of Finance and Administration, vol. 17(2), pages 145-160.
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    7. Justin Contat & Malcolm Rogers, 2022. "Housing Supply and Liquidity in the COVID-19 Era," FHFA Staff Working Papers 22-02, Federal Housing Finance Agency.
    8. S. Belgin Akçay & Mert Akyüz, 2024. "Why Did House Prices Go Up During COVID-19 Pandemic? Policy-Driven or Market-Driven?," International Real Estate Review, Global Social Science Institute, vol. 27(2), pages 303-328.
    9. Safiye Özge Subaşı & Tüzin Baycan, 2022. "Impacts of the COVID-19 pandemic on private rental housing prices in Turkey," Asia-Pacific Journal of Regional Science, Springer, vol. 6(3), pages 1177-1193, October.
    10. Sr Dr Tham Kuen-wei & Chai Woei-Chyi & Dr Cheng Chin-Tiong & Dr Alan Chong Kim-Wing & Pang Khai-Shuen, 2024. "A Review of COVID-19 Impacts on Global Residential Property Prices and Key Trends: UK, China, Malaysia, Singapore and United States," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 2038-2059, December.
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