Theoretical Analysis of Real Estate Market Equilibrium Under Pandemic Shocks

This paper constructs a theoretical framework integrating health risk transmission, remote work constraints, and spatial equilibrium to analyze the impact mechanisms of major public health events on the real estate market. This study finds that pandemics affect market equilibrium through multiple channels, including changes in residents’ utility functions, the reshaping of labor market structures, and adjustments in location choices. The model combines the SIR model from epidemiology with spatial economics to depict the endogenous decision mechanism of health risks. By constructing a two-sector general equilibrium model that includes remote work sectors, this study reveals the impact of technological change on the spatial structure of the real estate market. Based on the mobility preference theory, an asset pricing framework incorporating health risk premiums is established. Comparative static analysis shows that the health risk transmission coefficient influences housing prices through two channels: directly lowering willingness to pay and indirectly affecting the distribution of population density. Dynamic analysis indicates that, under specific parameter conditions, the market exhibits asymptotic stability. Policy simulation results show that the transmission effects of monetary and fiscal policies exhibit significant spatial heterogeneity, requiring policymakers to pay more attention to regional differences. This study not only enriches the analytical tools of real estate economics but also provides theoretical support for relevant policy formulation.