RT Journal Article
SR Electronic
T1 Risk Disclosure and Home Prices
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 102122-0087R
DO 10.3368/le.100.1.102122-0087R
A1 Lala Ma
A1 Margaret Walls
A1 Matthew Wibbenmeyer
A1 Connor Lennon
YR 2023
UL http://le.uwpress.org/content/early/2023/07/07/le.100.1.102122-0087R.abstract
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.