US Housing Market during COVID-19: Aggregate and Distributional Evidence

Zhao, Yunhui. 2020. “US Housing Market during COVID-19: Aggregate and Distributional Evidence,” COVID Economics, 50 (September): 113–154.

41 Pages Posted: 23 Aug 2020 Last revised: 7 Jan 2021

See all articles by Yunhui Zhao

Yunhui Zhao

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: January 6, 2021

Abstract

Using zip code-level data and nonparametric estimation, I present eight stylized facts and test three hypotheses on the COVID-era US housing market. Some results are: (1) growth rate of median housing price since the Fed’s monetary easing has accelerated faster than in the lead-up to global financial crisis; (2) the increase of housing demand seems more pronounced among the two ends of income distribution; (3) the housing market developments are strikingly similar across the country. These results highlight some potential unintended consequences of the COVID-era monetary easing, including driving up housing prices, weakening financial stability, and increasing wealth inequality.

Keywords: COVID-19, US housing, Monetary easing, Systemic risk, Distributional effect

JEL Classification: E52, G18, G28, R38

Suggested Citation

Zhao, Yunhui, US Housing Market during COVID-19: Aggregate and Distributional Evidence (January 6, 2021). Zhao, Yunhui. 2020. “US Housing Market during COVID-19: Aggregate and Distributional Evidence,” COVID Economics, 50 (September): 113–154., Available at SSRN: https://ssrn.com/abstract=3677651 or http://dx.doi.org/10.2139/ssrn.3677651

Yunhui Zhao (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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