Uncovering the pathways between house prices and depressive symptoms in Chinese cities: a nationally representative study

Using data from the 2016 China Labour-force Dynamic Survey (CLDS) and ordinary least square (OLS) analysis with the instrumental variable (IV) method, this study examined causal relationships between house prices (both the level and growth rate) and depressive symptoms, particularly investigating their pathways and the moderating effects of housing tenure, house price trend, and house value appreciation. Results showed that both the level and growth rate of house prices lowered homeowners’ levels of depressive symptoms and the effects were strengthened by upward trends of house prices, but the rise in house price growth rate was associated with a higher level of depressive symptoms in renters. There was no evidence to support the idea that the effect of house prices varied in relation to unrealized house value appreciation or depreciation. Results reveal the mediating role of physical activity and house value in the relationship between house prices and depressive symptoms in homeowners, supporting the wealth effect theory. However, the rise in both the level and the growth rate of house prices was related to a lower level of perceived social status, which in turn was correlated with a higher level of depressive symptoms. Contrary to the socioeconomic effect theory, the level of house prices is positively related to the expenditure on urban construction and maintenance, which is correlated with a higher level of depressive symptoms in homeowners. These findings provide important implications for policies to improve mental health and wellbeing in the Chinese context.