A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States

Under the background of intensified global economic fluctuations, to prevent the systemic risk of real estate (e.g., the U.S. subprime crisis), this study constructs a linkage network of the real estate industry in the U.S. based on the complex network method, reveals the fluctuation diffusion mecha...

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Main Authors: Wenwen Xiao, Xuemei Pei, Wenhao Song, Lili Wang
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Buildings
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Online Access:https://www.mdpi.com/2075-5309/15/12/2013
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author Wenwen Xiao
Xuemei Pei
Wenhao Song
Lili Wang
author_facet Wenwen Xiao
Xuemei Pei
Wenhao Song
Lili Wang
author_sort Wenwen Xiao
collection DOAJ
description Under the background of intensified global economic fluctuations, to prevent the systemic risk of real estate (e.g., the U.S. subprime crisis), this study constructs a linkage network of the real estate industry in the U.S. based on the complex network method, reveals the fluctuation diffusion mechanism, identifies the key pivotal industries through the network characteristic indicators, and analyses the characteristics of the fluctuation conduction paths by applying the industrial fundamental association trees. The study found that (1) the U.S. real estate industry is a ‘supply hub’ industry, with first-order and second-order weighted degrees of mean 6.78, 3.98, and significant asymmetry in the supply structure of the industrial network; (2) industries like architectural, engineering, and related services (541300), nonresidential maintenance and repair (230301), and electric power generation, transmission, and distribution (221100) show high degree centrality and betweenness centrality. Their strong propagation and control capabilities form real estate fluctuations’ core transmission mechanisms; (3) foundational association trees reveal long, broad propagation paths where financial investment and energy-supply sectors act as “traffic hubs,” decisively influencing risk diffusion depth and breadth. Targeted policy recommendations address four dimensions: optimizing industrial chain structures, strengthening financial risk isolation, improving housing supply systems, and enhancing policy coordination. This aims to help China avoid U.S.-style real-estate-bubble risks and achieve coordinated real estate macroeconomy development.
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institution Kabale University
issn 2075-5309
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series Buildings
spelling doaj-art-e0140eb3407945f5b062faad6192fffa2025-08-20T03:26:20ZengMDPI AGBuildings2075-53092025-06-011512201310.3390/buildings15122013A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United StatesWenwen Xiao0Xuemei Pei1Wenhao Song2Lili Wang3School of Management Engineering, Shandong Jianzhu University, Jinan 250101, ChinaSchool of Management Engineering, Shandong Jianzhu University, Jinan 250101, ChinaSchool of Management Engineering, Shandong Jianzhu University, Jinan 250101, ChinaSchool of Business, Shandong Jianzhu University, Jinan 250101, ChinaUnder the background of intensified global economic fluctuations, to prevent the systemic risk of real estate (e.g., the U.S. subprime crisis), this study constructs a linkage network of the real estate industry in the U.S. based on the complex network method, reveals the fluctuation diffusion mechanism, identifies the key pivotal industries through the network characteristic indicators, and analyses the characteristics of the fluctuation conduction paths by applying the industrial fundamental association trees. The study found that (1) the U.S. real estate industry is a ‘supply hub’ industry, with first-order and second-order weighted degrees of mean 6.78, 3.98, and significant asymmetry in the supply structure of the industrial network; (2) industries like architectural, engineering, and related services (541300), nonresidential maintenance and repair (230301), and electric power generation, transmission, and distribution (221100) show high degree centrality and betweenness centrality. Their strong propagation and control capabilities form real estate fluctuations’ core transmission mechanisms; (3) foundational association trees reveal long, broad propagation paths where financial investment and energy-supply sectors act as “traffic hubs,” decisively influencing risk diffusion depth and breadth. Targeted policy recommendations address four dimensions: optimizing industrial chain structures, strengthening financial risk isolation, improving housing supply systems, and enhancing policy coordination. This aims to help China avoid U.S.-style real-estate-bubble risks and achieve coordinated real estate macroeconomy development.https://www.mdpi.com/2075-5309/15/12/2013complex network analysisindustrial complex networksindustrial fluctuationsreal estatefluctuation propagation
spellingShingle Wenwen Xiao
Xuemei Pei
Wenhao Song
Lili Wang
A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States
Buildings
complex network analysis
industrial complex networks
industrial fluctuations
real estate
fluctuation propagation
title A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States
title_full A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States
title_fullStr A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States
title_full_unstemmed A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States
title_short A Network Analysis of the Real Estate Fluctuation Propagation Effect in the United States
title_sort network analysis of the real estate fluctuation propagation effect in the united states
topic complex network analysis
industrial complex networks
industrial fluctuations
real estate
fluctuation propagation
url https://www.mdpi.com/2075-5309/15/12/2013
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