The Impact of Wildfires and Wildfire-Induced Air Pollution on House Prices in the United States
Zeying Huang, Mark Skidmore
Abstract
<h3>Abstract</h3> We investigate the direct impact of wildfires on house prices as well as the indirect impact of wildfires through fine particulate matter (PM<sub>2.5</sub>) in the United States. We find that wildfires, particularly those occurring at a distance, have a statistically significant detrimental impact on house prices via PM<sub>2.5</sub>. We observe notable price discrepancies between houses situated upwind and downwind locations of wildfires. Areas with longer periods of wildfire absence and greater distances from the nearest wildfire correspond to higher property prices. Households value locations with ample greenery while remaining cognizant of wildfire risks.
Topics & Concepts
Environmental scienceParticulatesProperty valueAir pollutionGeographyPhysical geographyPollutionMeteorologyEconomicsEcologyReal estateBiologyFinanceFlood Risk Assessment and ManagementHousing Market and EconomicsAgricultural risk and resilience