Full Citation
Title: The Effect of Racial Composition on Neighborhood Housing Prices: Evidence from Hurricane Katrina-Induced Migration
Citation Type: Journal Article
Forthcoming?: Yes
ISBN:
ISSN: 00941190
DOI: 10.1016/J.JUE.2022.103515
NSFID:
PMCID:
PMID:
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.
User Submitted?: No
Authors: Daepp, Madeleine I.G.; Bunten, devin michelle; Hsu, Joanne W.
Periodical (Full): Journal of Urban Economics
Issue:
Volume: 134
Pages: 1-14
Data Collections: IPUMS NHGIS
Topics: Fertility and Mortality, Health, Housing and Segregation, Migration and Immigration, Natural Resource Management, Population Health and Health Systems
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