The Impact of Housing Prices on Birth Rates in China

Abstract

This paper explores the relationship between birth rates and housing prices in China. The empirical literature suggested mixed results in terms of relationships between housing prices and birth rates. Using a panel data of 30 provinces in China from 2002 to 2018, we estimated both static and dynamic panel models and found that there was a negative relationship between housing prices and birth rates in China from 2002 and 2018 from our dynamic model but a positive relationship from the static models. We provide some possible explanations for these findings and conclude with some policy recommendations for increasing birth rates in China.