Early Effects of the COVID-19 Pandemic on Housing Market in the United States

28 Pages Posted: 27 May 2020

Date Written: May 21, 2020

Abstract

I use daily data from fifty major cities to investigate the early effects of the COVID-19 pandemic on housing market in the United States. I find that starting from the second half of March, 2020, new home listings and pending home sales started to decrease. By mid-April, certain markets experienced more than 60% drop in new home listings and pending home sales relative to the same time period in the previous year. The collapse of the housing market is broad based, hitting all major cities, regardless of the intensity of virus spread or timing of the introduction of state level policies to combat the pandemic. The only exception is the closure of non-essential businesses at certain states, which is associated with up to a 9 percentage point decrease in new home listings.

Keywords: COVID-19, housing market, United States

JEL Classification: I18, R31

Suggested Citation

Yoruk, Baris, Early Effects of the COVID-19 Pandemic on Housing Market in the United States (May 21, 2020). Available at SSRN: https://ssrn.com/abstract=3607265 or http://dx.doi.org/10.2139/ssrn.3607265

Baris Yoruk (Contact Author)

SUNY University at Albany ( email )

1400 Washington Avenue
Building, Room 109
Albany, NY 12222
United States

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