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Residential land price fluctuations caused by behavioral changes on work-from-home based on COVID-19

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  • Katafuchi, Yuya

Abstract

This study analyzes how the behavioral changes associated with novel coronavirus disease (COVID-19) have affected residential land prices. Under previous pandemics (e.g., Spanish flu and SARS), avoidance of real estate transactions accompanied by going-out behavior and contraction of the real economy have caused a decrease in residential land prices. On the other hand, under the COVID-19 pandemic, it has been reported that residential land prices were stable or increasing due to behavioral changes such as the promotion of work-from-home (WFH). In order to confirm this phenomenon, this study first constructs a yearly panel dataset of Japan with the average published land price at the prefectural level as the dependent variable and treatment variables based on policy interventions for COVID-19, or WFH implementation. Second, this study uses the dataset to examine the relationship between land prices and changes in these conditions before and after the pandemic using the difference-in-difference method. The results of the above empirical analysis suggest that residential land prices were higher in prefectures where policy interventions related to COVID-19 were more robust than in other prefectures and where WFH was promoted more. This result supports the upward trend in residential land prices during the COVID-19 pandemic in the prefectures where policy interventions on COVID-19, including requests for WFH, are more implemented and where WFH is more prevalent.

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  • 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.
    • Handle: RePEc:pra:mprapa:109310
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    References listed on IDEAS

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    2. Ka Shing Cheung & Chung Yim Yiu & Chuyi Xiong, 2021. "Housing Market in the Time of Pandemic: A Price Gradient Analysis from the COVID-19 Epicentre in China," JRFM, MDPI, vol. 14(3), pages 1-17, March.
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    Cited by:

    1. Kurita, Kenichi & Katafuchi, Yuya, 2021. "COVID-19, stigma, and habituation: Theory and evidence from mobility data," MPRA Paper 110253, University Library of Munich, Germany.

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    More about this item

    Keywords

    COVID-19; Land price; Work-from-home; Telework;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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