AREUEA Policy Forum

The AREUEA Policy Forum aims to build bridges between research and policy making in real estate and urban policy.

Panel Discussion: “Climate Risk”

June 1, 2023, AREUEA National Meeting (Washington, DC)

• Moderator
  • Xudong An, Federal Reserve Bank of Philadelphia
• Panelists
  • Daniel Coates, Federal Housing Finance Agency (FHFA)
  • Anne Sheehan, Federal Emergency Management Agency (FEMA)
  • Amanda Ross, University of Alabama
  • Siddhartha Biswas, Federal Reserve Bank of Philadelphia

Featured Research Briefs

• “California Wildfires, Property Damage, and Mortgage Repayment”
  
  • By Siddhartha Biswas and coauthors
• “Asymmetric Information in the Florida Homeowners Insurance Market”
  
  • By Amanda Ross and coauthors

Additional Resources

Selected Working Papers

• California Wildfires, Property Damage, and Mortgage Repayment.  Siddhartha Biswas, Mallick Hossain and David Zink (2023).

• Who Bears Flood Risk? Evidence from Mortgage Markets in Florida, Parinitha Sastry (2022).

• The Unintended Consequences of Post-Disaster Policies for Spatial Sorting. Marcel Henkel, Eunjee Kwon, and Pierre Magontier (2022).

• Climate Risk and Commercial Property Values: A Review and Analysis of the Literature, Jim Clayton, Steven Devaney, Sarah Sayce, and Jorn van de Wetering (2021).

• Housing and Mortgage Markets with Climate-Change Risk, Paulo Issler, Richard Stanton, Carles Vergara-Alert, and Nancy Wallace (2021).

Selected Publications

• Jawad M. Addoum, Piet Eichholtz, Eva Steiner, and Erkan Yönder. 2023. “Climate change and commercial real estate: Evidence from Hurricane Sandy.” Real Estate Economics, forthcoming.

• Ajita Atreya, and Jeffrey Czajkowski. 2016. “Graduated Flood Risks and Property Prices in Galveston County.” Real Estate Economics 47(3): 807-844.

• Geoffrey K. Turnbull, Velma Zahirovic-Herbert, and Chris Mothorpe. 2012. “Flooding and Liquidity on the Bayou: The Capitalization of Flood Risk into House Value and Ease-of-Sale.” Real Estate Economics 41(1): 103-129.

• Gourevitch, Jesse, Carolyn Kousky, Yanjun Liao, Christoph Nolte, Adam Pollack, Jeremy Porter, and Joakim Weill. 2023. "Unpriced climate risk and the potential consequences of overvaluation in US housing markets." Nature Climate Change 13: 250-257.

• Hovekamp, Winston and Katherine R. H. Wagner. 2023. "Efficient Adaptation to Flood Risk." AEA Papers and Proceedings, 113: 304-09.

• Hino, Miyuki, and Marshall Burke. 2021. The Effect of Information about Climate Risk on Property Values. Proceedings of the National Academy of Sciences (PNAS) 118, e2003374118.

• Baldauf, Markus, Lorenzo Garlappi and Constantine Yannelis. 2020. “Does Climate Change Affect Real Estate Prices? Only if You Believe in It.” Review of Financial Studies 33(3): 1256‐1295.

• Bernstein, Asaf, Matthew Gustafson, and Ryan Lewis. 2019. “Disaster on the Horizon: The Price Effect of Sea Level Rise.” Journal of Financial Economics 134(2): 253-300

Research Briefs and Reports

• A Collection of Essays on Climate Risk and the Housing Market [Volume 1] [Volume 2], Research Institute for Housing America.

• Climate Risk and Real Estate: Emerging Practices for Market Assessment, Urban Land Institute and Heitman.

• Climate Risks in the Real Estate Sector, United Nations (David Carlin, Maheen Arshad, and Katy Baker).

• California Wildfires: Can Insurance Markets Handle the Risk, RAND (Lloyd Dixon, Flavia Tsang, and Gary Fitts).

• United Policyholders: Survey of Homeowners Affected by Wildfires, United Policy Holders.

• Minding the Protection Gap: Resolving Unintended, Pervasive, Profound Homeowner Underinsurance, Kenneth Klein.

• Climate Scenario Analysis by Jurisdictions: Initial findings and lessons, Network for Greening the Financial System. 

Central Bank Reports 

• Climate-related risk drivers and their transmission channels (Bank for International Settlements, 2021).

• Results of the 2022 climate risk stress test of the Eurosystem balance sheet (European Central Bank, 2023)

• Results of the 2021 Climate Biennial Exploratory Scenario (Bank of England, 2022)

• A First Assessment of Financial Risks Stemming from Climate Change: The Main Results of the 2020 Climate Pilot Exercise (Banque de France, 2021)

Tools

• FEMA National Risk Index 

• SHELDUS 

• First Street Foundation Risk Factor

• NOAA Sea Level Rise Viewer

• US Drought Monitor

News

• Your Homeowners' Insurance Bill Is the Canary in the Climate Coal Mine. New York Times, May 7, 2023.

• Florida Coastal Living Reshaped by Hurricane Housing Codes. Wall Street Journal, October 17, 2022.

• Florida’s home insurance market was a mess before Ian. It’s about to get worse. CNN, September 30, 2022.

• Climate-Change Risks Get the Attention of Real Estate Investors. New York Times, April 19, 2022.

• What climate change will mean for your home. Washington Post, March 24, 2022.

• Millions in fire-ravaged California at risk of losing home insurance. LA Times, September 26, 2021.

• Federal Reserve provides additional details on its pilot climate scenario analysis exercise. Board of Governors of the Federal Reserve System, January 17, 2023.

The AREUEA Policy Forum aims to build bridges between research and policy making in real estate and urban policy.