Sustainable development and housing market trends: the influence of CO₂ emissions and macroeconomic factors

Purpose: This study aims to investigate the relationship between housing price (HP) and the macroeconomic determinants such as gross domestic product (GDP), CO₂, inflation (INF) and unemployment (UNEMP). Design/methodology/approach: To examine the dynamic functioning of HPs due to these indicators, the study uses the quantile autoregressive distributed lagged (QARDL) technique to extract the detailed influence in quantile form. However, the Wald test and Granger causality test are implied in the data to verify the long- and short-run associations. Findings: The results of the QARDL indicated that except for UNEMP, other factors like INF, GDP and CO₂ are positively significant with HPs throughout the quantiles, but UNEMP is negatively significant with HP. Moreover, Granger causality shows the bidirectional relationship among the variables. Originality/value: Worldly advancements and financial crises accelerated at the same pace, due to which instability and uncertain consequences occur globally. One of the noticeable issues is the indeterminate real estate prices; thus, this study highlighted this issue and conducted the study in Malaysia. Considering these results, the last section of the study suggested some substantial implications for the Malaysian economy to overcome the issues regarding HP and provide better and more secure living standards for their civilians and attainment of SDG 11(Sustainable Cities and Communities) and SDG 13(Climate Action).