Quantifying the Impact of the COVID-19 Pandemic on Housing Prices in Los Angeles using Time Series Analysis

The real estate market is an indispensable part of both the national economy and the financial system. For households, housing is one of the most important consumer commodities, and a family’s finances and expenses are bound to be significantly influenced. For a country, the housing market majorly affects the growth of the GDP, so even a small fluctuation in the real estate market can lead to a subsequent impact on the economy as a whole. Therefore, it is worthwhile to take housing price forecasts into consideration. In addition, with the outbreak of COVID-19, the impact this pandemic brings to the real estate market needs to be analyzed. As a result, this research focuses on making a forecast of housing prices in Los Angeles by applying the ARIMA model and then quantifying how the COVID-19 affects housing values using time series analysis. In that case, policymakers can make more informed regulations on the real estate market, making citizens' lives easier than before.