Lead: Jesse Gourevitch
Counselor: Carolyn Kousky

Many homes are built in areas that face climate risks like flooding, but these risks are not always clear when people buy houses. Unpriced climate risk can lead to homes being built in vulnerable places and home values quickly declining when consumers’ perceptions of climate risks change, creating market instability. One reason this occurs is due to a lack of or inaccurate climate risk information. Research led by Jesse Gourevitch examines how climate risk information is currently shared through both public and private channels, emphasizing the need for more accessible and reliable data from government sources. If property sellers are required to disclose climate-related hazards, such as flood risk, during real estate transactions, this could reduce information gaps between buyers and sellers and improve market transparency. However, implementing disclosure laws may influence the demographic makeup of homebuyers in affected areas. To better understand potential impacts of this type of requirement, Gorevitch estimates the effects, noting that preliminary research suggests that as demand for high-risk properties declines due to increased awareness, lower-income households may become disproportionately exposed to flood risks.