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
Date Written: January 6, 2021
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: Suggested Citation