Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai

ABSTRACT This paper investigates the localized and short‐term effects of COVID‐19‐induced lockdowns on Shanghai's rental market in the second half of 2022. Using Difference‐in‐Differences methodologies, we find that rental prices declined by 1.5% following the lockdowns on average, with areas c...

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Main Authors: Yanpeng Jiang, Xiaochi Shen
Format: Article
Language:English
Published: Wiley 2025-06-01
Series:International Studies of Economics
Subjects:
Online Access:https://doi.org/10.1002/ise3.70005
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author Yanpeng Jiang
Xiaochi Shen
author_facet Yanpeng Jiang
Xiaochi Shen
author_sort Yanpeng Jiang
collection DOAJ
description ABSTRACT This paper investigates the localized and short‐term effects of COVID‐19‐induced lockdowns on Shanghai's rental market in the second half of 2022. Using Difference‐in‐Differences methodologies, we find that rental prices declined by 1.5% following the lockdowns on average, with areas characterized by a high density of companies falling by 2.0% and no significant change in suburban areas. Event‐study analysis further reveals that this decline peaked at 3.0% 2 months post‐lockdown. This decline was temporary with rental prices returning to pre‐lockdown levels within 12 months. Robustness checks and comparisons with housing sale prices confirm the absence of significant spillover effects or structural shifts. These findings underscore the localized and temporary nature of lockdown‐induced disruptions in the rental market and may be valuable to housing policymakers considering responses to short‐term crises.
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spelling doaj-art-351f6a622c61493c91d28384dc5bb6362025-08-20T03:58:48ZengWileyInternational Studies of Economics2831-32242025-06-0120217719410.1002/ise3.70005Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From ShanghaiYanpeng Jiang0Xiaochi Shen1School of Economics Shanghai University of Finance and Economics Shanghai ChinaAntai College of Economics & Management Shanghai Jiao Tong University Shanghai ChinaABSTRACT This paper investigates the localized and short‐term effects of COVID‐19‐induced lockdowns on Shanghai's rental market in the second half of 2022. Using Difference‐in‐Differences methodologies, we find that rental prices declined by 1.5% following the lockdowns on average, with areas characterized by a high density of companies falling by 2.0% and no significant change in suburban areas. Event‐study analysis further reveals that this decline peaked at 3.0% 2 months post‐lockdown. This decline was temporary with rental prices returning to pre‐lockdown levels within 12 months. Robustness checks and comparisons with housing sale prices confirm the absence of significant spillover effects or structural shifts. These findings underscore the localized and temporary nature of lockdown‐induced disruptions in the rental market and may be valuable to housing policymakers considering responses to short‐term crises.https://doi.org/10.1002/ise3.70005lockdownpandemicrental marketspatial heterogeneityurban resilience
spellingShingle Yanpeng Jiang
Xiaochi Shen
Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai
International Studies of Economics
lockdown
pandemic
rental market
spatial heterogeneity
urban resilience
title Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai
title_full Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai
title_fullStr Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai
title_full_unstemmed Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai
title_short Localized and Short‐Term Effects of Lockdowns on Urban Rental Markets: Evidence From Shanghai
title_sort localized and short term effects of lockdowns on urban rental markets evidence from shanghai
topic lockdown
pandemic
rental market
spatial heterogeneity
urban resilience
url https://doi.org/10.1002/ise3.70005
work_keys_str_mv AT yanpengjiang localizedandshorttermeffectsoflockdownsonurbanrentalmarketsevidencefromshanghai
AT xiaochishen localizedandshorttermeffectsoflockdownsonurbanrentalmarketsevidencefromshanghai