COVID-19 and Housing Market Effects: Evidence from U.S. Shutdown Orders

48 Pages Posted: 10 Jul 2020 Last revised: 1 Sep 2021

See all articles by Walter D'Lima

Walter D'Lima

Florida International University (FIU) - Hollo School of Real Estate

Luis A. Lopez

University of Illinois at Chicago

Archana Pradhan

CoreLogic (Headquarters)

Date Written: September 23, 2020

Abstract

This paper provides novel evidence on pricing effects in housing markets following government shutdown responses to COVID-19 using micro-level data on U.S. residential property transactions. We find that post-shutdown pricing effects not only depend on population density but also the size and structural density of properties. The average price of a three-bedroom property fell by approximately 1.4% in densely populated locations (e.g., downtown) but increased by about 1.5% in low-density locations (e.g., suburbs) where shutdowns were enacted. The effects are more drastic for properties with fewer bedrooms. We also document a significant decrease in sales for markets under a shutdown.

Keywords: COVID-19, house prices, real estate, shutdown order

JEL Classification: I18, R21, R28

Suggested Citation

D'Lima, Walter and Lopez, Luis A. and Pradhan, Archana, COVID-19 and Housing Market Effects: Evidence from U.S. Shutdown Orders (September 23, 2020). Available at SSRN: https://ssrn.com/abstract=3647252

Walter D'Lima (Contact Author)

Florida International University (FIU) - Hollo School of Real Estate ( email )

Miami, FL 33199
United States

Luis A. Lopez

University of Illinois at Chicago ( email )

1200 W Harrison St
Chicago, IL 60607
United States

Archana Pradhan

CoreLogic (Headquarters) ( email )

40 Pacifica, Suite 900
Irvine, CA 92618
United States

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