Abstract
This paper examines the monetary impact of changing perceptions of climate change on the coastal residential real estate market. Climate change is not yet fully capitalized into the cost of housing, and a property’s exposure to sea level rise or flooding will cause the property's value to decrease (or increase at a slower rate) compared to unexposed properties. As fears around damage to property increase, demand to live in coastal exposed communities decreases, directly reducing property prices. Utilizing a hedonic linear regression model in combination with climate change belief data, I analyze coastal housing prices but find no empirical correlation between expectation of future climate damage to current property prices at the county level. The aggregation bias problems of this paper make the results difficult to interpret. An extensive literature review indicates that changing climate risk will affect coastal housing prices and exposed coastal properties are currently overvalued.
Advisor
Mellizo, Philip
Department
Economics
Recommended Citation
Hebert, Charles, "Impact of Growing Belief in Climate Change on Housing Costs in the United States" (2024). Senior Independent Study Theses. Paper 10888.
https://openworks.wooster.edu/independentstudy/10888
Disciplines
Real Estate
Keywords
Climate Change, Belief, Sea Level Rise, Real Estate, Coastal, Housing
Publication Date
2024
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2024 Charles Hebert