Full Citation

Title: The Effect of Racial Composition on Neighborhood Housing Prices: Evidence from Hurricane Katrina-Induced Migration

Citation Type: Journal Article

Publication Year: 2023

ISBN:

ISSN: 00941190

DOI: 10.1016/J.JUE.2022.103515

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Abstract: Urban housing markets are characterized by racial sorting, but equilibrium prices respond to marginal buyers and thus may mask underlying preferences for segregation. Large migration shocks can make visible these otherwise infra-marginal preferences. We study the effects of Hurricane Katrina-induced displacement on housing markets in receiving neighborhoods in Texas, where 1 in 5 New Orleanians relocated. Using an event study design, we find that the relocation of 100 additional Katrina survivors to a receiving ZIP code is associated with a 2.2% decline in relative house prices five years after the storm. This effect is driven by responses to movers from predominantly Black origin blocks. We argue that our findings are best explained by a preference for segregation on the part of incumbent White residents. In this case, racial stratification in the effect of a disaster is followed by racial stratification in economic responses.

Url: https://doi.org/10.1016/J.JUE.2022.103515

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Authors: Daepp, Madeleine I G; Bunten, Devin Michelle; Hsu, Joanne W

Periodical (Full): Journal of Urban Economics

Issue: 2023

Volume: 134

Pages: 103515

Data Collections: IPUMS NHGIS

Topics: Migration and Immigration, Population Mobility and Spatial Demography, Race and Ethnicity

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