Dataset Information

Epidemic shocks and housing price responses: Evidence from China's urban residential communities.

ABSTRACT: This paper evaluates the impact of the COVID-19 epidemic on the real estate market using a community-level panel dataset of 34 major cities in China. We find that the average housing price in communities with COVID-19 infections decreases by approximately 1.3% compared to communities with no confirmed cases. The economic implication is that homebuyers are willing to pay a premium equivalent to approximately 1.3% of the average housing price to avoid health risks. The response of real estate markets to epidemic shocks is heterogeneous in community and city characteristics. Dynamic analysis shows that the declines in home prices, transaction volumes, and rents are all short-lived, returning to their original development paths a few months after the epidemic shock. Public interventions such as community closures and quarantines may have contributed to the rapid recovery of the housing market, reducing the volatility of housing assets in the household sector.

SUBMITTER: Liu Y

PROVIDER: S-EPMC9754793 | biostudies-literature | 2021 Jul

REPOSITORIES: biostudies-literature

ACCESS DATA

Publications

Epidemic shocks and housing price responses: Evidence from China's urban residential communities.

Liu Yanan Y Tang Yugang Y

Regional science and urban economics 20210527

This paper evaluates the impact of the COVID-19 epidemic on the real estate market using a community-level panel dataset of 34 major cities in China. We find that the average housing price in communities with COVID-19 infections decreases by approximately 1.3% compared to communities with no confirmed cases. The economic implication is that homebuyers are willing to pay a premium equivalent to approximately 1.3% of the average housing price to avoid health risks. The response of real estate mark ...[more]

PMID: 36540690

Similar Datasets

Project description:The Chinese economy has undergone a long-term transition reform, but there is still a planned economy characteristic in the financial sector, which is financial repression. Due to the existence of financial repression, China's actual interest rate level should be lower than the Consumer Price Index (CPI). However, based on official China's interest rates and CPI, over half of the years China's actual interest rate remained higher than CPI by our calculation from 1999 to 2022. This is inconsistent with the financial repression that exists in China, and the main reason is the calculation methods of China's CPI. China's CPI measurement system originated from the planned economy era, which did not fully consider the rise in housing purchase prices, so the current CPI measurement system can be more realistically presented by taking the rise in housing prices into consider. The core idea of this study is to mining relevant official statistical data and calculate the proportion of Chinese residents' expenditure on purchasing houses to their total expenditure. By taking the proportion of house purchases as the weight of house price factor, and taking the proportion of other consumption as the weight of official CPI, the Generalized CPI (GCPI) is formulated. The GCPI is then compared with market interest rates to determine the actual interest rate situation in China over the past 20 years. This study has found that if GCPI is used as a measure, China's real interest rates have been negative for most years since 1999. Chinese residents have suffered the negative effects of financial repression over the past 20 years, and their property income cannot keep up with the actual losses caused by inflation. Therefore, it is believed that China's CPI calculation method should be adjusted to take into account the rise in housing prices, so China's actual inflation level could be more accurately reflected. In view of the above, deepening interest rate marketization reform and expand channels for financial investment are the future development goals of China's financial system.

Project description:BackgroundBurn injuries are a significant public health concern, closely linked to housing conditions and socioeconomic status. Residents in socioeconomically deprived neighbourhoods are at increased risk of exposure to hazards due to older and poorer housing conditions and limited access to fire protection measures. Individual behaviours such as substance use, smoking, and hoarding are often highlighted as primary causes of residential fires, overshadowing the broader socioeconomic and structural factors that also play a significant role in housing safety. This paper explores the correlation between inadequate housing conditions and heightened fire risks leading to burn injuries, focusing on the contextual factors shaping everyday urban fire risks, experiences, and responses of residents living in Single-Room Occupancy (SRO) housing in Vancouver's Downtown East Side (DTES) and staff working in the fire, health, housing (social and private), and non-profit sectors.MethodsAs part of an ongoing ethnographic study, we partnered with the Vancouver Fire Rescue Services (VFRS) to conduct participant observations in private, non-profit, and government-owned SROs, modular homes, and a temporary shelter. This paper synthesizes insights from participant observations from the first author's self-reflexive journals, including informal conversations with approximately fifty-nine individuals such as SRO tenants, SRO managers/caretakers, health workers, burn survivors, municipal staff, not-for-profit staff, and firefighters.ResultsUrgent housing-related issues contributing to inequitable everyday urban fire risks were identified, such as structural deficiencies in SRO buildings and systems, inadequate waste management and storage, and inequitable approaches to addressing hoarding. Additionally, disparities in access to information and the interaction between interpersonal and structural stigmas were significant factors, underscoring the pressing need for intervention.ConclusionCommunities like DTES, facing precarious housing conditions, disadvantaged neighbourhoods, and complex health and social challenges, necessitate a comprehensive and holistic approach to fire prevention and safety. Recognizing the interplay between housing instability, mental and physical health issues, unregulated toxic drug supply, drug criminalization, and structural inequities allows practitioners from various sectors to develop contextually driven fire prevention strategies. This multifaceted approach transcends individual-level behaviour change and is crucial for addressing the complex issues contributing to fire risks in underserved communities.

Dataset Information

Epidemic shocks and housing price responses: Evidence from China's urban residential communities.

Publications

Epidemic shocks and housing price responses: Evidence from China's urban residential communities.

Similar Datasets

OmicsDI is part of the ELIXIR infrastructure

Tweets