Residential land price fluctuations caused by behavioral changes on work-from-home based on COVID-19

Yuya Katafuchi

MPRA Paper from University Library of Munich, Germany

Abstract: This study analyzes how the behavioral changes associated with novel coronavirus disease (COVID-19) have affected residential land prices. Under previous pandemics (e.g., Spanish flu and SARS), avoidance of real estate transactions accompanied by going-out behavior and contraction of the real economy have caused a decrease in residential land prices. On the other hand, under the COVID-19 pandemic, it has been reported that residential land prices were stable or increasing due to behavioral changes such as the promotion of work-from-home (WFH). In order to confirm this phenomenon, this study first constructs a yearly panel dataset of Japan with the average published land price at the prefectural level as the dependent variable and treatment variables based on policy interventions for COVID-19, or WFH implementation. Second, this study uses the dataset to examine the relationship between land prices and changes in these conditions before and after the pandemic using the difference-in-difference method. The results of the above empirical analysis suggest that residential land prices were higher in prefectures where policy interventions related to COVID-19 were more robust than in other prefectures and where WFH was promoted more. This result supports the upward trend in residential land prices during the COVID-19 pandemic in the prefectures where policy interventions on COVID-19, including requests for WFH, are more implemented and where WFH is more prevalent.

Keywords: COVID-19; Land price; Work-from-home; Telework (search for similar items in EconPapers)
JEL-codes: I12 I15 I18 R21 R30 (search for similar items in EconPapers)
Date: 2021-08-22
New Economics Papers: this item is included in nep-hea, nep-isf and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/109310/1/MPRA_paper_109310.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/109317/1/MPRA_paper_109317.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/109340/1/MPRA_paper_109340.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/109789/1/MPRA_paper_109789.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/109822/1/MPRA_paper_109822.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/110091/1/MPRA_paper_110091.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/110254/1/MPRA_paper_110254.pdf revised version (application/pdf)

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:pra:mprapa:109310

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().