TY - JOUR
T1 - Heterogeneity in the recovery of local real estate markets after extreme events
T2 - The case of Hurricane Sandy
AU - Ellen, Ingrid Gould
AU - Meltzer, Rachel
N1 - Publisher Copyright:
© 2024 American Real Estate and Urban Economics Association.
PY - 2024/5
Y1 - 2024/5
N2 - Natural disasters can cause physical damage and provide information about flood risk. We find that the prices of one to three family homes in New York City hit by high storm surges during Hurricane Sandy dropped by 16% and remained 12% lower than pre-storm levels 6 years after the storm. Effects were concentrated in areas outside of pre-existing flood zones, where risks were less salient, and they were more persistent in lower income areas. Finally, flooding may have changed neighborhood demographic trends, as post-Sandy homebuyers in hard-hit areas had lower incomes and were less likely to be white.
AB - Natural disasters can cause physical damage and provide information about flood risk. We find that the prices of one to three family homes in New York City hit by high storm surges during Hurricane Sandy dropped by 16% and remained 12% lower than pre-storm levels 6 years after the storm. Effects were concentrated in areas outside of pre-existing flood zones, where risks were less salient, and they were more persistent in lower income areas. Finally, flooding may have changed neighborhood demographic trends, as post-Sandy homebuyers in hard-hit areas had lower incomes and were less likely to be white.
KW - hurricane
KW - price capitalization
KW - risk and information
UR - http://www.scopus.com/inward/record.url?scp=85189532601&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85189532601&partnerID=8YFLogxK
U2 - 10.1111/1540-6229.12485
DO - 10.1111/1540-6229.12485
M3 - Article
AN - SCOPUS:85189532601
SN - 1080-8620
VL - 52
SP - 714
EP - 752
JO - Real Estate Economics
JF - Real Estate Economics
IS - 3
ER -