NBER

Miyuki Hino

University of North Carolina at Chapel Hill

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of North Carolina at Chapel Hill

NBER Working Papers and Publications

February 2020Does Information About Climate Risk Affect Property Values?
with Marshall Burke: w26807
Floods and other climate hazards pose a widespread and growing threat to housing and infrastructure around the world. By incorporating climate risk into asset prices, markets can discourage excessive development in hazardous areas. However, the extent to which markets actually price these risks remains poorly understood. Here we measure the effect of information about flood risk on residential property values in the United States. Using multiple empirical approaches and two decades of sales data covering the universe of homes in the US, we find little evidence that housing markets fully price information about flood risk in aggregate. However, the price penalty for flood risk is larger for commercial buyers and in states where sellers must disclose information about flood risk to potential...

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