Template-type: ReDIF-Paper 1.0
Author-Name: Adrian Fernández-Pérez
Author-Email: adrian.fernandez-perez@ucd.ie
Author-Workplace-Name: Department of Banking and Finance, Michael Smurfit Graduate Business School, University College of Dublin (Ireland)
Author-Name: Marta Gómez-Puig
Author-Email: marta.gomezpuig@ub.edu
Author-Person: pgm5
Author-Workplace-Name: Department of Economics and Riskcenter, Universitat de Barcelona (Spain)
Author-Name: Simón Sosvilla-Rivero
Author-Email: sosvilla@ccee.ucm.es
Author-Person: pso34 
Author-Workplace-Name: Complutense Institute for Economic Analysis, Universidad Complutense de Madrid (Spain)
Title: Hot Property: A Spatial Analysis of Temperature and Housing Prices in Spain
Abstract: This study examines the impact of extreme temperatures on housing price dynamics in Spain, considering both direct and indirect 
	effects across geographic space. Using panel data at the provincial level and a spatial econometric model, we find that an increase 
	in the number of days with maximum temperatures exceeding 35 °C (95ºF) over the past year is significantly associated with a decline 
	in both sale and rental prices within the affected province. However, we also identify a positive indirect effect on housing markets 
	in more distant provinces, particularly in the rental sector, consistent with a pattern of temperature-induced house price premium 
	in cooler regions. 
Classification-JEL: C23, Q54, R14, R21, R31.
Keywords: Extreme Heat Temperature, Housing Prices, Spatial Econometrics, Environmental Economics.
Note: This paper is based on work supported by the Spanish Ministry of Science and Innovation [grants PID2024-157911NB-I00 and 
	TED2021-129891B-I00], the Spanish State Investigation Agency [grant PID2023-146832OB-I00] and Generalitat de Catalunya 
	[grant 2023CLIMA00012].
Length: 45 pages 
Creation-Date: 2025
Number: 2025-04
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae2504.txt
File-URL: https://hdl.handle.net/20.500.14352/124571
File-Format: Application/html
Handle: RePEc:ucm:doicae:2504