Oferta de vivienda y Covid-19 : evidencia para Colombia

Abstract

This paper researches the effects of the COVID-19 in Colombian new housing market, given the importance of this market in the economic reactivation after the economic shock of the pandemic. This sector reached during 2021 an all-time peak, pushed up by the incentives and expansive policy implemented by the government of Iván Duque. Literature and empiric models about the behavior of the housing market and pandemic are linked and reviewed and finally a fixed effects panel is developed based on the inverse demand function methodology proposed by Allen-Coghlan and McQuinn (2020). In this model, price is taken as the dependent variable and is explained by variables such as the number of new cases, the number of doses of vaccines administered, the number of loans granted, and interest rates for home purchase, taking seven cities as the sample. The model shows that there is an inverse relationship between the number of new infections and the price of housing and a direct relationship between the doses administered and the price.