PT  - JOURNAL ARTICLE
AU  - Ma, Lala
AU  - Walls, Margaret
AU  - Wibbenmeyer, Matthew
AU  - Lennon, Connor
TI  - Risk Disclosure and Home Prices
AID  - 10.3368/le.100.1.102122-0087R
DP  - 2023 Jul 13
TA  - Land Economics
PG  - 102122-0087R
4099  - http://le.uwpress.org/content/early/2023/07/07/le.100.1.102122-0087R.short
4100  - http://le.uwpress.org/content/early/2023/07/07/le.100.1.102122-0087R.full
AB  - Damages from wildfires have increased dramatically in recent years. This study uses a boundary discontinuity design to estimate the effect of wildfire hazard disclosure on house prices. Using the universe of single-family sales transactions from the Zillow ZTRAX program in California from 2015 through 2022, we find that, on average, homes that faced disclosure requirements sold for approximately 4.3 percent less than nearby homes that did not. Price impacts are higher in recent years, following several damaging wildfires. Our findings highlight the use of disclosure regulations to ensure that disaster risks are reflected in housing markets.