Study Shows How Facebook Can Decide the Price of Your Home

Advertisement
By Indo-Asian News Service | Updated: 30 May 2016 17:08 IST
Social networking platforms like Facebook can not only get you more likes, it can also influence the price of your home if you intend to sell one, say researchers.

House prices rise can spread through social networks like a virus and your Facebook friends can have too much of an influence on what one pays for a house.

According to researchers from the US National Bureau of Economic Research, people whose friends are experiencing house price rises were willing to pay more for a house.

The study, done by Facebook economist Michael Bailey, Harvard University's Ruiqing Cao and Johannes Stroebel and Theresa Kuchler from New York University's Stern School of Business, combined Facebook survey data with public record information on housing transactions.

Advertisement

They looked at friends who were "geographically distant" and their social networks to find the effects, nzherald.co.nz reported.

Advertisement

"If people's far-off friends were from places where house prices rose by five percent stronger than expected in the last two years, they were more likely to buy a house by 3.1 percent, bought a house 1.7 percent larger and paid 3.3 percent more for a given house," the findings showed.

The sample was enormous, matching "more than 520,000 housing transactions in Los Angeles county since 1993 to the Facebook account of the respective home buyer".

Advertisement

Also, individuals whose friends experienced larger recent house price increases were more optimistic about property investments, the study added.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Facebook, Science, Social
Advertisement

Related Stories

Popular Mobile Brands
  1. Here's When the Vivo X300 Ultra Will be Showcased Globally
  2. OTT Releases This Week (Feb 23 - Mar 1): The Bluff, Ikkis, Psycho Saiyaan, and More
  3. Noise Master Buds 2 Launched in India With Bose-Tuned Audio
  4. PGA Tour 2K25, Monster Hunter Rise and More Join PS Plus in March
  5. Amazfit Active 3 Premium With 1.32-Inch Display Launched at This Price
  6. Apple Teases Major Hardware Announcements Starting March 2
  7. A New Leak Suggests the OnePlus 15T Won't Arrive With Camera Upgrades
  8. Samsung Galaxy A57, Galaxy A37 EU Energy Labels Reveal Key Battery Details
  1. Xiaomi QLED TV X Pro 75 With 4K QLED Display, 34W Speakers Goes on Sale in India: Price, Features
  2. Realme C100 5G Specifications Revealed via Amazon Listing as Smartphone Bags Regulatory Certifications
  3. Noise Master Buds 2 Launched in India With Bose-Tuned Sound, Spatial Audio Support: Price, Specifications
  4. Amazfit Active 3 Premium Launched With 1.32-Inch Display, Up to 12 Days of Battery Life: Price, Features
  5. PS Plus Monthly Games for March Announced: PGA Tour 2K25, Monster Hunter Rise and More
  6. OnePlus 15T Tipped to Launch With Nearly Identical Camera Setup as OnePlus 13T, Higher Price Tag
  7. Motorola Razr Fold, Edge 70 Fusion Leak Reveals Design of FIFA Edition Variants
  8. Huawei Mate 80 Pro Launched Globally With 50-Megapixel Main Camera, 100W Fast Charging
  9. Vivo T4 Series, iQOO Z10 Lineup to Get Price Hike Starting March 1, Tipster Claims
  10. Huawei MatePad Mini Launched Globally With 8.8-Inch 2.5K Display, 6,400mAh Battery
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.