The impact of COVID-19 on the housing market: evidence from the Yangtze river delta region in China

We investigate the impacts of COVID-19 on the housing market in the Yangtze river delta region in China. We divide data into the groups of the municipality directly under the central government (first-tier city) and other provinces (second- and third-tier cities), and use average selling price of commercial housing to capture the performance of local housing market. The findings suggest significantly positive impacts of COVID-19 on housing price in this region, which implies the urgent needs of housing for families to stay together during the epidemic. The municipality directly under the central government (also the first-tier city) usually tends to have higher housing prices due to better economic and medical conditions and urban governance there, while such impacts shrink in the period of epidemic, implying the effective control of housing price there, which provides relevant policy guidance for other provinces and non-first-tier cities.

Automated summary

The study reveals significantly positive impacts of COVID-19 on housing prices in the Yangtze river delta region, indicating the urgent need for family reunions during the epidemic. First-tier cities usually have higher housing prices due to better economic and medical conditions, but these impacts are reduced during the epidemic, suggesting effective control measures in place.