Typological differentiation and time-series effects of urban renewal on housing prices

Abstract

Urban renewal is a critical avenue and strategic tool for achieving high-quality and sustainable development, and the residential market plays a vital role in promoting urban renewal and urban growth. However, the impact of urban renewal on housing prices remains inconclusive, closely tied to the characteristics of the study area, the sources of research data, and so on. To address this, we employ the difference-in-difference method and a mixed panel dataset of housing transactions from 2010 to 2021 to analyze in detail the effects of different urban renewal types (Industrial Renewal, Residential Renewal, and Commercial Renewal) on surrounding housing prices in Bao'an District at different renewal phases (announcement, start, and completion). We found that Industrial Renewal exerts the most significant impact on housing prices at the beginning and completion of renewal, followed by Residential Renewal and Commercial Renewal. Moreover, Urban renewal generates both positive and negative externalities on housing prices, especially in the case of numerous small-scale renewal projects. The findings suggest that urban renewal should be supported by systematic research on renewal types, the establishment of scale entry threshold, and the monitoring of the entire process.