The impact of COVID-19 on home value in major Texas cities
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 13 August 2021
Issue publication date: 21 March 2023
Abstract
Purpose
This study aims to analyze the impact of COVID-19 on housing price within four major metropolitan areas in Texas: Austin, Dallas, Houston and San Antonio. The analysis intends to understand economic and mobility drivers behind the housing market under the inclusion of fixed and random effects.
Design/methodology/approach
This study used a linear mixed effects model to assess the socioeconomic and housing and transport-related factors contributing to median home prices in four major cities in Texas and to capture unobserved factors operating at spatial and temporal level during the COVID-19 pandemic.
Findings
The regression results indicated that an increase in new COVID-19 cases resulted in an increase in housing price. Additionally, housing price had a significant and negative relationship with the following variables: business cycle index, mortgage rate, percent of single-family homes, population density and foot traffic. Interestingly, unemployment claims did not have a significant impact on housing price, contrary to previous COVID-19 housing market related literature.
Originality/value
Previous literature analyzed the housing market within the first phase of COVID-19, whereas this study analyzed the effects of the COVID-19 throughout the entirety of 2020. The mixed model includes spatial and temporal analyses as well as provides insight into how quantitative-based mobility behavior impacted housing price, rather than relying on qualitative indicators such as shutdown order implementation.
Keywords
Acknowledgements
The authors thank Redfin, Google Community Mobility Reports, the Federal Reserve Bank of Dallas, the US Census Bureau, the Texas Workforce Commission and the Texas State Department Heath Services for accurate documentation of data used in this analysis. This work was supported by University of Texas good system grand challenge and USDOT CM2 University Transportation Center at University of Texas Austin.
Citation
Bhat, M.R., Jiao, J. and Azimian, A. (2023), "The impact of COVID-19 on home value in major Texas cities", International Journal of Housing Markets and Analysis, Vol. 16 No. 3, pp. 616-627. https://doi.org/10.1108/IJHMA-05-2021-0058
Publisher
:Emerald Publishing Limited
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