Despite the danger depicted in recent news coverage of homes going up in flames, Americans are still flocking to the natural beauty found out in the sticks. A recent study by Shawn McCoy, an economics professor with the University of Nevada Las Vegas and Randy P. Walsh of the University of Pittsburgh points to homeowners somewhat inexplicable propensity to value great views higher than safety.
Convincing those with a love of the outdoors to not rebuild in areas recently scorched by wildfires often falls on deaf ears and the long term numbers aren't helpful. The study shows that housing prices initially tumble in areas affected by fire disasters, which is not surprising. But emulating the new regrowth that occurs in a burned-out forest, prices typically bounce back in as little as one to two years after a blaze.
In their research, McCoy and Walsh examined real estate transaction data from nearly 360,000 properties across eight Colorado counties which were affected by 18 severe wildfires between 2000 and 2012. McCoy and Walsh used statistical techniques to contrast changes in real estate prices before and after wildfires across two distinct types of homes: Houses located in wildfire risk zones and otherwise similar homes located in low risk zones.Read More