Sea Level Rise and Home Prices: Evidence from Long Island

Justin Tyndall

No 2021-2R, Working Papers from University of Hawaii Economic Research Organization, University of Hawaii at Manoa

Abstract: Global sea level rise is a known consequence of climate change. As predictions of sea level rise have grown in magnitude and certainty, coastal real estate assets face an increasing climate risk. I use a complete data set of repeated home sales from Long Island in New York State to estimate the appreciation discount caused by the threat of sea level rise. The repeat sale methodology allows for time-invariant, unobserved property characteristics to be controlled for. Between 2000 and 2017, I find that residential properties that were exposed to future sea level rise experienced an annual price appreciation rate of roughly one percentage point below unexposed properties. I provide numerous robustness checks to con rm this result. I also find evidence of demand spillovers by estimating an appreciation premium for properties that are near the coast but are relatively safe from sea level rise.

Keywords: Transportation; Safety; Health; Traffic Fatalities; Externalities (search for similar items in EconPapers)
JEL-codes: G10 Q54 R30 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2021-03, Revised 2021-09
New Economics Papers: this item is included in nep-env and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Sea Level Rise and Home Prices: Evidence from Long Island (2023)
Working Paper: Sea Level Rise and Home Prices: Evidence from Long Island (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hae:wpaper:2021-2r

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