The COVID-19 Pandemic and Its Effects on the United States Housing Market
The COVID-19 Pandemic and Its Effects on the United States Housing Market

Author(s): Glen Liperi, Egla Mansi, Nerajda Feruni
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Housing Market; USA; Counties; Urban; Rural; COVID-19; Economic Activity
Summary/Abstract: This research examines the impact of the COVID-19 pandemic on the housing market in the United States, with a specific focus on housing prices and their relationship with COVID-19 infection rates. The study utilizes a panel-data regression model, using monthly county-level data spanning from January 2020 to December 2022. Two separate models were employed, one for urban counties and another for rural counties, determined by population data. These models employ a fixed effects regression approach with robust standard errors and incorporate various independent variables to explore the association between county-level economic activity, unemployment rates, long-term interest rates, COVID-19 infection cases, and national housing market prices. The findings of this investigation reveal that the prices of homes in the United States were influenced by both the number of COVID-19 infection cases and the economic factors under consideration. Interestingly, urban counties experienced more pronounced fluctuations in housing prices compared to their rural counterparts. Moreover, there was a noticeable shift in housing demand, with a preference for less densely populated areas over densely populated ones. The outcomes of this study offer insights into spatial disparities and their implications for the real estate market.

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