Quantifying the Impact of the COVID-19 Pandemic on Housing Prices in Los Angeles using Time Series Analysis
DOI:
https://doi.org/10.54097/8m6nxm72Keywords:
Housing price, Los Angeles, ARIMA model, COVID-19.Abstract
The real estate market is an indispensable part of both the national economy and the financial system. For households, housing is one of the most important consumer commodities, and a family’s finances and expenses are bound to be significantly influenced. For a country, the housing market majorly affects the growth of the GDP, so even a small fluctuation in the real estate market can lead to a subsequent impact on the economy as a whole. Therefore, it is worthwhile to take housing price forecasts into consideration. In addition, with the outbreak of COVID-19, the impact this pandemic brings to the real estate market needs to be analyzed. As a result, this research focuses on making a forecast of housing prices in Los Angeles by applying the ARIMA model and then quantifying how the COVID-19 affects housing values using time series analysis. In that case, policymakers can make more informed regulations on the real estate market, making citizens' lives easier than before.
Downloads
References
Chuan Zhao, Fuxi Liu, Impact of housing policies on the real estate market - Systematic literature review, Heliyon, 2023.
Cheng L, Ying Z. How does housing wealth affect household consumption? Evidence from macro-data with special implications for China, China Econ. Rev., 2021.
Fan Y, Yavas A. How does mortgage debt affect household consumption? Micro evidence from China, R. Estate Econ., 2020, 48 (1).
Kadir Atalay, Rebecca Edwards. House prices, housing wealth and financial well-being. Journal of Urban Economics, 2022, 129, 103438.
Thwala W D, Mvubu M. Problems facing small and medium size contractors in Swaziland, J. Serv. Sci. Manag., 2009, 2 (4): 353 - 361.
Xichen Wang, Qingya Liu. Can the global financial cycle explain the episodes of exuberance in international housing markets, Finance Research Letters, 2023, 52: 103366.
WHO. COVID-19 Dashboard. Geneva: World Health Organization, 2020.
Del Giudice, Vincenzo, Pierfrancesco De Paola, Francesco Paolo Del Giudice. COVID-19 Infects Real Estate Markets: Short and Mid-Run Effects on Housing Prices in Campania Region (Italy). Social Sciences, 2020, 7: 114.
Baker Scott R, et al. How Does Household Spending Respond to an Epidemic? Consumption During the 2020 COVID-19 Pandemic. The Review of Asset Pricing Studies, 2020.
Siti Indati Mustapa, Rajah Rasiah, Amar Hisham Jaaffar, Aisyah Abu Bakar, Zeittey Karmilla Kaman. Implications of COVID-19 pandemic for energy-use and energy saving household electrical appliances consumption behaviour in Malaysia. Energy Strategy Reviews, 2021, 38: 100765.
Xianhang Qian, Shanyun Qiu, Guangli Zhang, The impact of COVID-19 on housing price: Evidence from China. Finance Research Letters, 2021, 43: 101944.
Greg Howard, Jack Liebersohn, Adam Ozimek. The short- and long-run effects of remote work on U.S. housing markets, Journal of Financial Economics, 2023, 150: 166 - 184.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Highlights in Science, Engineering and Technology
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
