Heat Waves and Housing Markets: Assessing the Effects on Real Estate Prices in China

Fanglin Chen (), Jie Zhang () and Zhongfei Chen ()
Additional contact information
Fanglin Chen: Peking University
Jie Zhang: Jinan University
Zhongfei Chen: Jinan University

Environmental & Resource Economics, 2025, vol. 88, issue 6, No 2, 1579 pages

Abstract: Abstract The risks brought about by climate change are complex and varied. A comprehensive study of the economic impact of climate change on various industries can help take proactive measures to enhance economic resilience. We use the panel data samples of monthly data at city level from 2010 to 2020 in China to explore the effects and mechanisms of heatwaves on real estate prices. Our research finds that for every 1 unit increase in standardized temperature, it will reduce housing prices by approximately CNY110 per square meter. The heterogeneity analyses indicate that in inland areas, areas with high fiscal pressure, and good development of the primary industry, this impact is even stronger. In addition, the exploration of potential mechanisms indicates that extreme high temperatures will reduce the proportion of employed people in the secondary industry, increase the proportion of employed people in the tertiary industry, reduce employment opportunities, inhibit agricultural development, and lower the willingness of foreign investment. These factors will lead to a decrease in housing prices from the demand side. This study analyzed the potential impact of climate risk on property value, contributing to a better understanding of the uncertain market environment.

Keywords: Climate change; Extreme events; House price; Real estate prices (search for similar items in EconPapers)
JEL-codes: Q54 Q56 R21 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10640-025-00975-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:88:y:2025:i:6:d:10.1007_s10640-025-00975-1

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-025-00975-1

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().