Speaker: Associate Professor Jin-Dong Pang (School of Economics and Management, Wuhan University)
Host: Assistant Professor Rui Xu (China Institute for Economic Studies, Liaoning University)
Guest Introduction: Associate Professor Yu Zhou (China Institute for Economic Studies, Liaoning University)
Time: Friday, October 11, 2024, 14:00–15:30 (Beijing Time)
Venue: First-floor conference room, Wuzhouyuan, Chongshan Campus, Liaoning University
Online Access: Tencent Meeting ID: 358-6417-4104
Language: Chinese/English
Abstract: This paper systematically examines the impact of extreme heat on the real estate market and its underlying mechanisms. Using monthly housing prices and transaction volume data from 70 large and medium-sized cities in China from 2011 to 2019, as well as second-hand housing transaction data from 26 cities, the study constructs an extreme heat indicator based on historical temperature data (1973–2010). A fixed-effects model is employed to quantitatively assess the effects of extreme heat on real estate transaction prices and volumes. The empirical results show that a single day with a maximum temperature above the 95th percentile of the 1973–2010 temperature series in the region, within 30 days prior to the transaction, leads to a 2-basis-point (0.02%) decrease in the sale price per unit of housing, and a 0.41% drop in the number of second-hand house transactions in that area for the month. The negative effects of extreme heat on housing prices and transaction volumes are more pronounced in northern cities, cities with higher spatial temperature fluctuations, and regions that are either excessively humid or dry. Mechanism analysis confirms that extreme heat reduces the number of house viewings, which in turn affects transaction prices. This study reveals the significant impact of extreme heat on the real estate market, offering insights for adaptive policies related to extreme weather and real estate regulations.
Speaker's Bio: Jin-Dong Pang is a tenured associate professor at the School of Economics and Management, Wuhan University. He earned his bachelor's and master's degrees from Xi'an Jiaotong University and his Ph.D. from Syracuse University. His main research areas include urban, regional, and environmental economics. He has led youth and general projects funded by the National Natural Science Foundation of China, and his research has been published in renowned international journals such as theJournal of Urban Economics,Journal of Economic Behavior and Organization,Journal of Population Economics,Journal of Applied Econometrics,Canadian Journal of Economics,Regional Science and Urban Economics, andJournal of Real Estate Finance and Economics.
