Urban Leverage and Housing Price in China
Wanying Lu () and
Additional contact information
Wanying Lu: Faculty of Construction and Environment, The Hong Kong Polytechnic University, Hong Kong, China
JRFM, 2022, vol. 15, issue 2, 1-12
This paper examines whether urban leverage, defined by the bank loan-to-deposit ratio in a city, affects housing prices in China. Using a panel dataset of 236 cities and hedonic models, we find a depressing effect of urban leverage on housing price in first- and second-tier cities while leaving third- and fourth-tier cities unaffected. Urban leverage negatively affects housing prices by influencing credit supply. Moreover, the difference-in-differences analysis indicates that purchase restriction policies amplify the depressing effect of urban leverage on housing prices. Overall, we show that urban leverage is an important determinant of housing prices in China.
Keywords: urban leverage; housing price; credit supply; housing purchase restrictions (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:15:y:2022:i:2:p:87-:d:752581
Access Statistics for this article
JRFM is currently edited by Ms. Chelthy Cheng
More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().