Household Sorting as Adaptation to Hurricane Risk in the United States

Fan, Qin; Bakkensen, Laura A.

doi:10.3368/le.98.2.111319-0162r1

Cited by 5 publications

(4 citation statements)

References 53 publications

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“…(2021) provided a detailed review of the recent literature. Many of these articles focus on neighborhood‐level variation in flood risk in coastal states, including Florida, New Jersey, and New York (Fan & Bakkensen, 2022; Keys & Mulder, 2020). Fewer articles examine price impacts relative to wildfire exposure (McCoy & Walsh, 2018).…”

Section: Location Choicementioning

confidence: 99%

How will US households adjust their housing behaviors in response to climate change?

Schuetz

2024

Real Estate Economics

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Americans are moving toward climate risk, even as property damage from climate stresses becomes more salient. Over the coming years, climate change is likely to affect housing decisions through a variety of channels, for instance, by making high‐risk locations less attractive both to live and to invest. Households can respond to climate change in multiple ways, reflecting their underlying risk tolerance, financial resources, social networks, lifestyle preferences, and access to information. Private market actors and governments can also alter their engagement with housing markets, including the pricing and availability of property insurance and mortgages and subsidies for climate‐friendly retrofits. In this article, I review the literature on how households are incorporating climate risks into their housing decisions, identifying knowledge gaps and priorities for policymakers. A growing body of work suggests that localized climate risks are capitalized into housing prices in high‐risk areas, particularly in the recent wake after high‐profile storms. Much less is known about consumer knowledge of, and responses to, chronic climate stresses. A notable research gap exists on the climate impacts on renter households and rental markets.

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Section: Location Choicementioning

confidence: 99%

How will US households adjust their housing behaviors in response to climate change?

Schuetz

2024

Real Estate Economics

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“…These findings suggest that we should interpret migration results with caution; it is challenging to tease apart disaster‐related effects from general economic trends. Fan and Bakkensen (2022) find heterogeneous household responses to hurricane risk: seniors, college graduates, individuals from states more frequented by hurricanes, and households with fewer children are less sensitive. While they also find small overall migration changes in response to projected future hurricane risk, some regions will gain relative population shares at the expense of others, pointing to the importance of spatial heterogeneity in this context.…”

Section: Physical Risksmentioning

confidence: 99%

When climate meets real estate: A survey of the literature

Contat,

Hopkins,

Mejia

et al. 2024

Real Estate Economics

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With near unanimity, climate scientists project natural disasters to increase in frequency, severity, and geographic scope over the next century. We survey academic literature at the intersection of these climate risks and real estate. Our review of physical risks includes price, loan performance, and migratory effects stemming from flooding, wildfires, and sea level rise. We review transition risks, including energy use and decarbonization, as they relate to real estate. Where possible, we explain how these topics may intersect with housing affordability, especially in historically disadvantaged communities. We conclude by highlighting critical areas for future research.

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“…La adaptación al cambio climático genera nuevos costos en los hogares y puede alterar las condiciones de vida y de trabajo. Por ejemplo, las viviendas pueden reubicarse o readaptarse para resistir condiciones meteorológicas extremas 180,181 , y los patrones de consumo pueden cambiar para compensar los daños del clima 62 . Es importante destacar que los hogares con menores ingresos pueden enfrentarse a mayores riesgos derivados del cambio climático y disponer de menos recursos para soportar los costos de la adaptación (KM 22.3, 22.4) 98 .…”

Section: Hogares De Los Ee Uuunclassified

Cap. 19. La economía. En: La Quinta Evaluación Nacional del Clima

2023

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Household Sorting as Adaptation to Hurricane Risk in the United States

Cited by 5 publications

References 53 publications

How will US households adjust their housing behaviors in response to climate change?

How will US households adjust their housing behaviors in response to climate change?

When climate meets real estate: A survey of the literature

Cap. 19. La economía. En: La Quinta Evaluación Nacional del Clima

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