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The relationship between robotics and housing prices: evidence from housing markets in Chinese cities

Jiantao Zhou, Huiwen Peng, Eddie Chi-Man Hui and Qun Wu

Industry and Innovation, 2025, vol. 32, issue 2, 139-165

Abstract: This study examines the effects of automation on the housing market through the adoption of industrial robots in Chinese cities. We argue that automation affects housing prices by influencing the labour market on the demand side of housing and land supply on the supply side. Empirical results confirm the validity of these hypotheses, indicating that one more unit of predicted robot deployment per 10,000 workers increases local housing prices by approximately 3%. Mechanism analysis shows that exposure to industrial robots attracts high-skilled migrants, pushing up house prices; meanwhile, land financing, playing a catalyst role, reinforces the impact of automation on house price increases. Additionally, exposure to industrial robots also exerts negative spillover effects on housing prices in neighbouring cities through the two above impact channels, confirmed by the empirical results of the dynamic spatial Durbin model. This study provides a new perspective on the potentially negative consequences of automation.

Date: 2025
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DOI: 10.1080/13662716.2024.2362238

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