Residential Preferences: What's Terrorism Got to Do with It?

Abstract

Security has long been recognized as an element in residential preference and its relative importance has risen with fear of extremist attacks on U.S. cities. Using polling data from 2004, this research investigates whether the security breaches of 9/11 in New York City influenced residential preferences in New York State. Our results confirm that perceived risks are greatest downstate but exert little overall net effect on (re)location plans. A stabilizing effect may be evident where preferences are reinforced among upstate residents who respond to downstate risk by strengthening “stay put” attitudes. An inspection of real‐estate data in the northern reaches of the New York Metropolitan Area suggests a risk‐averse hedging strategy—city residents relocating in stages by acquiring open land and the option to build and move should renewed terrorist attacks occur.

An Assessment Methodology for the Evaluation of the Impacts of the COVID-19 Pandemic on the Italian Housing Market Demand

“…In particular, Caputo [46,47] and Anand [48] have examined the importance of the influence of the potential buyers' psychological aspects on the markets, by defining the "regret theory", where regret is defined as the fear of investors to repent their investment decisions. By comparing data before and after the terrorist event, it has been possible to observe that subjective fear and the perception of risk are factor able to modify the market trend and the balance in urban dynamics [49,50]. Abadie [51] has analyzed vacancy rates data to investigate the impact of an increased perception of terrorist risk, after 11 September 2001, on the office real estate market in downtown Chicago.…”

Economic effects of terrorism: Local and city considerations, priorities for research and policy

“…Abadie and Dermisi () tracked building level vacancy rates in the office real estate market in Chicago and concluded that changes in the perceived threat or risk of terrorism in a city which has not been attacked (but which has landmark buildings) can significantly impact the real estate market. Heightened risk perceptions after 9/11 could in part explain a risk‐averse hedging strategy among residents in the New York metropolitan area, who were found to be relocating in stages by acquiring open land, giving them the option to move in the event of future attacks (see Kay, Geisler, & Bills, ).…”