Parallel Worlds? The Partisan Effects of COVID-19 on Real Estate

Differences in how Republicans and Democrats responded to COVID-19 resulted in differences in the functioning of housing markets. Democrats adjusted behavior more than Republicans in response to the pandemic. Democrats engaged in more social distancing, were less likely to have people into their homes, and were less willing to visit strangers’ homes. This resulted in supply effects that caused higher housing prices, fewer listings, and fewer days on the market for counties with lower support for former president Donald Trump in the 2020 election. We find no impact of state-imposed shutdowns or population density when political partisanship is accounted for.