"The impact of tornados on housing prices has not been extensively explored in a causal analysis framework. We estimate the effects of damage from a major tornado in Little Rock, Arkansas on prices of nearby undamaged homes. We study how a typical home’s proximity to damaged properties might have led to a discount in its price due to severe blight in the neighborhood. We focus on homes that sold between January 2022 and August 2024 and compare the effects of the March 31, 2023, tornado on sale prices for homes near versus far from damaged homes."
The authors acknowledge the excellent research assistance of Cole Kurokawa, Weidong Li, Lindsey Sanderson and Jake Shufro.
Tornado and House Price Responses-01-31-25-final (pdf)
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