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The impact of COVID-19 on housing price: Evidence from China

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  • Qian, Xianhang
  • Qiu, Shanyun
  • Zhang, Guangli

Abstract

Using data on monthly community-level confirmed COVID-19 cases and housing price in China, we investigate the impact of COVID-19 on housing price. With the difference-in-difference method, we find that the housing price of the communities with confirmed COVID-19 cases would reduce by 2.47%. The impact persists three months and the extent of the impact basically becomes greater as time goes on. The results are robust after the parallel pre-trend test and the placebo test. Moreover, the impact of COVID-19 on housing price only exists in regions with a higher infection level of COVID-19 or worse medical treatment conditions.

Suggested Citation

  • Qian, Xianhang & Qiu, Shanyun & Zhang, Guangli, 2021. "The impact of COVID-19 on housing price: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000258
    DOI: 10.1016/j.frl.2021.101944
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