Do Wind Hazard Mitigation Programs Affect Home Sales Values?
Daniel Petrolia,
Shea Ishee,
Seong Yun,
Reid Cummings and
Josh Maples
Journal of Real Estate Research, 2023, vol. 45, issue 2, 137-159
Abstract:
The FORTIFIED Home Program is a voluntary construction and re-roofing program designed to strengthen residential properties to withstand damages from severe weather events. The FORTIFIED designation framework can accommodate sustainable new home construction and existing property retrofitting efforts. Applying a two-state utility framework to Zillow’s ZTRAX and IBHS’s FORTIFIED designation data, we estimate the effect of a FORTIFIED Home designation on residential property values using sales transactions for coastal Alabama from 2011 to 2021. We add to the growing body of literature examining the relationship between eco-friendly construction applications and home prices by deriving the contribution of a FORTIFIED designation to enhanced risk reduction and lowered insurance costs. The results of our full- and nearest-neighbor-matched sample design suggest a likely price premium significance on the order of 2-4% for FORTIFIED homes.
Date: 2023
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/08965803.2022.2066249 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:rjerxx:v:45:y:2023:i:2:p:137-159
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjer20
DOI: 10.1080/08965803.2022.2066249
Access Statistics for this article
Journal of Real Estate Research is currently edited by William Hardin and Michael Seiler
More articles in Journal of Real Estate Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().