An Econometric Analysis of Housing Prices in Beijing’s Xicheng District Under the “Multi-School Zoning” Policy

Abstract

Students will be ineligible for direct admission to schools in their district under the 2020 “multi-school zoning” policy. In order to determine the extent to which the trend of housing prices in school districts is affected by this policy, this study investigates the housing prices in Xicheng District, Beijing based on the division of school districts. In this study, the data of housing prices and the general situation of communities in Xicheng District, Beijing were obtained from “Anjuke,” dividing them into two periods: 15 months before and after the policy. The DID model and time fixed effect were used to investigate the differential statistics, which indicate the overall net impact of the policy. The results show that the coefficient is negative at a certain statistical level. This indicates that the housing prices of school districts in Xicheng District reduced after the implementation of the “multi-school zoning” policy, suggesting that the policy has effectively reduced the housing prices of school districts in Xicheng District and laid a foundation for the “double reduction” policy in 2022.