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Housing Boom and Household Migration Decision: New Evidence from China

Author

Listed:
  • Lina Meng

    (Xiamen University)

  • Xiao Xiao

    (Xiamen University)

  • Yinggang Zhou

    (Xiamen University)

Abstract

With novel microdata from a household survey of China, we find that migrants decide to move out of destination cities experiencing housing booms, even after controlling for various factors and address potential endogeneity issues that may affect households’ migration decisions. Moreover, we present new evidence that housing booms have no effect on the decisions of homeowners but affect renters through a negative income effect. Next, we use big data on population flows from Tencent to confirm the effects of housing booms on households’ actual out-migration. The results suggest that an affordable home is a primary factor in attracting migrant households and maintaining a healthy economy.

Suggested Citation

  • Lina Meng & Xiao Xiao & Yinggang Zhou, 2023. "Housing Boom and Household Migration Decision: New Evidence from China," The Journal of Real Estate Finance and Economics, Springer, vol. 67(3), pages 453-479, October.
    • Handle: RePEc:kap:jrefec:v:67:y:2023:i:3:d:10.1007_s11146-021-09856-y
    DOI: 10.1007/s11146-021-09856-y
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    More about this item

    Keywords

    Housing booms; household’s migration decision; homeowners; renters;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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