Temperatures and search: evidence from the housing market

Michele Cascarano and Filippo Natoli ()
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Filippo Natoli: Bank of Italy

No 1419, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Climate and weather variations affect search and matching processes. We provide evidence for the housing market by combining daily temperatures in Italian cities with online search for 2 million ads and in-person appointments with real estate agents. Two results stand out. First, extremely hot temperatures reduce search, both online and physical, increasing time to sale and delaying housing transactions. Second, they induce a preference shift away from properties that are not climate-safe, leading to persistently lower prices. Extreme temperature effects are asymmetric as colder months induce an increase in online (but not physical) search.

Keywords: climate change; temperatures; housing search; house prices (search for similar items in EconPapers)
JEL-codes: C78 G1 Q54 R21 R31 (search for similar items in EconPapers)
Date: 2023-07
New Economics Papers: this item is included in nep-env and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1419_23

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