The health consequence of rising housing prices in China

This paper examines the health consequence of rising housing prices in China by exploiting spatial and temporal variation in housing price appreciation linked to individual-level health data from 2000 to 2011. Using an instrumental variable approach, we find that in- creases in housing prices significantly raise the probability of having chronic diseases. The deep-rooted marriage culture of males being obligated to buy a home before getting married and the growing marriage market competition are the main channels that exacerbate the negative health effects, particularly for parents with marriage-age sons. We also show that increased work intensity, high levels of stress, and lifestyle changes are other possible channels. Our results highlight the unintended health consequences of the real estate market prosperity.