Booming costs, boozing habits: How soaring housing prices drive smoking and drinking in China

Despite the high prevalence of smoking and drinking in China, the drivers of these behaviors have received limited attention. This study examines the impact of rising housing prices on residents' smoking and drinking habits and investigates the underlying mechanisms. Our findings indicate that rising housing prices significantly increase smoking and alcohol consumption among adult Chinese men. Specifically, a 10 % increase in housing prices is associated with an average 3.85 % rise in the probability of smoking, an increase of 0.73 cigarettes smoked per day, and a 3.9 % increase in the likelihood of frequent drinking. The key mechanism driving this increase is the stress-relief effect. Specifically, men facing heightened mating market pressure as well as among those with lower levels of education and income exhibit higher tobacco and alcohol consumption in response to rising housing prices. Although smoking and drinking are employed as coping mechanisms for stress, these behaviors exacerbate physical health issues without improving mental health. This paper provides robust empirical evidence from China, illustrating that mental stress induced by escalating housing costs is a key driver of increased tobacco and alcohol use.