This paper studies the impact of Covid-19 on neighborhood amenity by analyzing the effect of confirmed Covid-19 cases on housing prices in China. Home buyers may not choose housing units in neighborhoods that have confirmed Covid-19 cases because of health reasons. This will lead to lower housing prices in these neighborhoods. We use a hedonic model to study a merged dataset with information on housing transactions and infected cases of Covid-19. A difference-in-difference specification is employed to identify the price changes in neighborhoods with confirmed Covid-19 cases relative to the price changes in neighborhoods without any confirmed case. A negative effect of Covid-19 on housing price is expected and this negative effect is likely to diminish in the long run. Households’ willingness to pay to live in a neighborhood without Covid-19 cases can also be calculated.
Lead investigator: | Naqun Huang |
Affiliation: | Nanjing Audit University |
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Start date | 1/2019 |
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