Bauer Business Focus

Search Engines and the Housing Market

What’s the impact?

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With search sites revolutionizing the way consumers choose what to buy, it's no surprise that search engines have also impacted the housing market. Assistant Professor of Finance Antonio Gargano with the Bauer College of Business at the University of Houston, explains.

“When homebuyers begin their search through sites such as Zillow, they might be unaware that the price growth they experienced in their zip code shapes their searches.”

“Prospective homebuyers experiencing higher price growth in their part of town tend to search more broadly across locations and house characteristics. This generates spillovers onto sales prices across zip codes within a metropolitan area.”

“Therefore, search data offers insights into how local price growth transmits through the network of searchers.”

For more stories from the Bauer Business Focus, click here.