Do nearby forest fires cause a reduction in residential property values

By Jackson Loomis. 2004

131 citations recorded by the source corpus.

Abstract Linear and semi-log hedonic property models identified a statistically significant decrease in property values in a town that was 2 miles from a major wildfire that burned 12,000 acres, and destroyed 10 houses. The house price drop in the unburned community is about 15%. This suggests that home buyers and sellers appear to revise upward their perceptions of fire risk after a major fire as well possibly reflecting some loss in forest amenity value in the broader geographic area surrounding the unburned town. These factors combine to reduce the desirability of living in the forest, reducing house prices.

Subfields: Economics and Econometrics, Global and Planetary Change

View Paper: https://www.semanticscholar.org/paper/e055aeed7f30fd928d591f95a010951d6544f66b

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In Economics and Econometrics

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Citations in the corpus

Wildfire risk, salience & housing demand (2018, background): “Examples include Loomis (2004), Troy and Romm (2004), Donovan et al. (2007), Mueller and Loomis (2008), Huggett Jr et al. (2008), Mueller et al. (2009), Champ et al. (2009), Stetler et al. (2010), and Mueller and Loomis (2014).”
Do Repeated Wildfires Change Homebuyers’ Demand for Homes in High-Risk Areas? A Hedonic Analysis of the Short and Long-Term Effects of Repeated Wildfires on House Prices in Southern California (2009, background): “A recent study by Loomis found that house prices in an unburnedcommunitytwomilesfrom aColoradowildfiredecreasedby15%after thefire ( Loomis 2004 ).”
The effects of wildfire and environmental amenities on property values in northwest Montana, USA. (2010, background): “Wildfires have had large, persistent and negative effects on property values in northwest Montana, which is consistent with previous research in Colorado (Loomis, 2004).”
Spatial Dependence in Hedonic Property Models: Do Different Corrections For Spatial Dependence Result in Economically Significant Differences in Estimated Implicit Prices? (2008, methodology): “[See Taylor (2003) and Palmquist (1991) for a comprehensive discussion of the theoretical aspects of hedonic property models.”