Temperatures and Search: Evidence From the Housing Market

• DOI: 10.2139/ssrn.4849126
• Publication Date: 2024-05-31T13:23:50Z
• Authors: Michele Cascarano; Filippo Natoli

Climate and weather variations affect search matching processes. We provide evidence for the housing market by combining daily temperatures in Italian cities with online 2 million ads in-person appointments real estate agents. Two results stand out. First, extremely hot reduce search, both physical, increasing time to sale delaying transactions. Second, they induce a preference shift away from properties that are not climate-safe, leading persistently lower prices. Extreme temperature effects asymmetric as colder months an increase (but physical) search.