
doi: 10.2139/ssrn.2851540
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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