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Local Media and the Local Housing Market

Authors: Yeon Sik Eric Cho;

Local Media and the Local Housing Market

Abstract

This paper provides evidence for media affecting households' home-buying decisions, which in turn leads to an impact on short-term housing return. Individuals and households have been known to be affected by the media. Together with specific assumptions about the housing market, this implies a positive correlation between lagged media content and subsequent housing return. Through county-level panel time-series regression using data from 269 counties and newspaper articles as a proxy for the media, I find that counties with increase in housing related articles experience 7 to 10 annualized bp higher housing returns than other counties 4 to 6 months afterwards. This effect is persistent throughout the whole sample except during the housing crisis when there were higher than average amount of negative housing news. The increase in housing return is reversed in 10 to 12 months. Furthermore, using Google Trends data as a proxy for households' home-owning interest, I show that media affects households' home-buying interest.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
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