COVID-19 and Housing Prices: Evidence from U.S. County-Level Data

36 Pages Posted: 14 Dec 2020 Last revised: 19 Oct 2021

See all articles by HAKAN YILMAZKUDAY

HAKAN YILMAZKUDAY

Florida International University (FIU) - Department of Economics

Date Written: October 19, 2021

Abstract

This paper investigates the effects of coronavirus disease 2019 (COVID-19) on housing prices at the U.S. county level. The effects of COVID-19 cases on housing prices are formally investigated by using a difference-in-difference design, where county-specific factors, time-specific factors, and mobility measures of individuals are controlled for. The empirical results show evidence for negative and significant effects of COVID-19 cases on housing prices, robust to the consideration of several permutation tests. Investigating the channels of causality results in showing that the negative effects of COVID-19 cases on housing prices are more evident in counties with higher poverty rates. Exclusion tests further suggest that the empirical results are partly driven by U.S. counties in the state of California or the month of May 2020, although the results based on other counties and months are still in line with the benchmark results.

Keywords: COVID-19, Coronavirus, Housing Prices, Mobility, U.S. Counties

JEL Classification: I10, R21, R31

Suggested Citation

Yilmazkuday, Hakan, COVID-19 and Housing Prices: Evidence from U.S. County-Level Data (October 19, 2021). Available at SSRN: https://ssrn.com/abstract=3746552 or http://dx.doi.org/10.2139/ssrn.3746552

Hakan Yilmazkuday (Contact Author)

Florida International University (FIU) - Department of Economics ( email )

11200 SW 8th Street
Miami, FL 33199
United States

HOME PAGE: http://faculty.fiu.edu/~hyilmazk/

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