Driving Restrictions and Housing Prices: Evidence from the First Bridge and Tunnel Restriction in Chongqing, China
Key Points
This research aims to understand how bridge and tunnel driving restrictions affect urban housing prices in Chongqing.
Used a spatial difference-in-difference method to analyze data
Focused on housing prices within a 7 km radius of restricted areas
Assessed impacts of commuting costs on housing demand and supply
Housing prices decreased by 2.7% within restricted areas
Higher commuting costs contributed to decreased demand for second-hand houses
Increased housing supply was noted in proximity to the restrictions
Abstract
This paper examines the impact of bridge and tunnel driving restrictions in Chongqing, China on urban housing prices. Using a spatial difference-in-difference method, it finds a 2.7 per cent decrease in housing prices within a 7 km radius of restricted areas due to higher commuting costs caused by driving restrictions. This decline is attributed to an increase in supply and a decrease in demand for nearby second-hand houses. Improving public transport, such as light rail and buses, can mitigate the rising commuting expenses resulting from driving restrictions, thereby alleviating the negative effects on housing prices near restricted areas.