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Superstition in the Housing Market

Author

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  • Fortin, Nicole M.

    (University of British Columbia, Vancouver)

  • Hill, Andrew J.

    (University of British Columbia, Vancouver)

  • Huang, Jeff

    (University of British Columbia, Vancouver)

Abstract

We provide the first solid evidence that Chinese superstitious beliefs can have significant effects on house prices in a North American market with a large immigrant population. Using real estate data on close to 117,000 house sales, we find that houses with address number ending in four are sold at a 2.2% discount and those ending in eight are sold at a 2.5% premium in comparison to houses with other addresses. These price effects are found either in neighborhoods with a higher than average percentage of Chinese residents, consistent with cultural preferences, or in repeated transactions, consistent with speculative behavior.

Suggested Citation

  • Fortin, Nicole M. & Hill, Andrew J. & Huang, Jeff, 2013. "Superstition in the Housing Market," IZA Discussion Papers 7484, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7484
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    More about this item

    Keywords

    housing markets efficiency; lucky Chinese numbers; superstition; immigration;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • Z1 - Other Special Topics - - Cultural Economics

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