Full Citation
Title: The impact of natural hazards on local communities: understanding changes in homeownership rate after floods in Iowa
Citation Type: Conference Paper
Publication Year: 2023
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Abstract: Climate change is increasing the frequency and intensity of natural disasters, which might induce significant changes in housing markets. While research has acknowledged that flooding can have heterogeneous effects on homeowners and renters, few studies have analyzed the effect of flooding on homeownership rates. Using a panel fixed effect model, we find that flooding events can decrease average homeownership rates by 1.2%. Using a major flood in 2008 as a natural experiment, we decompose the effect of migration responses to the flood and find that the negative effect on homeownership can be persistent for over 6 years in inundated areas. We also find that the decrease in homeownership rate is driven largely by outmigration of existing owners. Our findings add to the literature on the effect of natural disasters on housing markets and inform policymakers about major channel for this transitions.
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Authors: Kunxin, Zhu; Gopalakrishnan, Sathya
Conference Name: 2023 Agricultural & Applied Economics Association Annual Meeting
Publisher Location: Washington DC
Data Collections: IPUMS USA
Topics: Housing and Segregation, Natural Resource Management
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