Linking the Dots: Housing Prices and Crime Rates Across Chinese Provinces

China has witnessed unprecedented economic growth and urbanisation while soaring housing prices and crime rates have become a burning issue. However, the research on the effect of Chinese housing prices on crime remains limited and ignores the endogeneity problem. This study covers all Chinese provinces from 2000 to 2015. By employing the two-step system generalised method of moments, we examine the association between housing prices and crime rates, addressing the endogeneity. We document a significant positive effect of the crime rate on housing prices. Furthermore, we report that economic growth and educational attainment negatively affect criminal activities. The results substantiate strain, disorganisation, and deterrence theories.