Climate Gentrification: The Impact of Storm Surge Flooding on Home Values in Florida

Abstract

Climate Gentrification is the theory that links climate change with population movement. Inland areas that are less exposed to climate-related threats such as storm surge and sea level rise become more attractive to wealthy homeowners who traditionally chose to live in areas near the coast. In Florida this concept is salient, given the vast coastal areas and fast-growing population. In fact,

This study tracks storm surge flooding from tropical storms and hurricanes between 2000 and 2019 and measures the rate of home value appreciation or depreciation during that same period at a county level. My hypothesis is that counties with more storm surge events will experience slower appreciation than those with fewer events. By using an Ordinary Least Squares model, I will measure the rate of home value appreciation during this period as a function of number of events, controlling for economic factors including population and income.

My findings suggest that with each additional event, the average home value in the affected counties increased by about $5,243. While my findings did not validate my hypothesis, I believe there are major policy implications for Climate Gentrification that will result from further research on the topic.