Mobility restrictions and their implications on the rental housing market during the COVID-19 pandemic in China's large cities.

ABSTRACT

The COVID-19 pandemic has caused significant mobility restrictions and generated profound impacts on global socio-economic development. Mobility restrictions can generate significant impacts on the demand and supply sides of the rental housing market. By taking 77 large Chinese cities as cases, this research establishes a stepwise mediation effect test to evaluate the impacts of the pandemic on the rental housing market during Q1 2020. The results show that the confirmed cases were negatively associated with rental unit transactions, and the inter-city and intra-city movement played a significant role of mediating effects. Meanwhile, the impact of pandemic on rents lagged behind rental transaction in China's large cities, and the strict mobility controls caused the high vacancy rate of rental housing, leading to the bankruptcy of many housing rental agencies. Our research add to the burgeoning literature examining the mediating effect of mobility control between confirmed case and housing rental market. It demonstrates that the change of housing rental market induced by pandemic in China is the short-term influence on rental unit transaction, which is different from western countries. In China, a country with the most strict mobility control, the challenges come from the impact of pandemic on housing rental agencies.