Work

Opioid Crisis and Real Estate Prices

Year: 2020

Type: article

Abstract: We study the impact of opioid abuse on real estate prices. We document that opioid death rates and excess prescription rates are negatively associated with house prices. Exploiting the staggered passage of opioid-limiting legislation, we find that a decrease in opioid abuse results in higher county-level house prices. This effect is due to fewer mortgage delinquencies, lower vacancy rates, more home improvement loans, and increased population inflow. Our findings are consistent with improved real estate conditions and a rise in local demand. These results highlight the importance of public health policy in mitigating the economic costs of the opioid epidemic.

Source: Journal of Financial and Quantitative Analysis

DOI: 10.1017/s0022109025102275

Authors: Cláudia Custódio, Dragana Cvijanović, Moritz Wiedemann

Institutions: Imperial College London, Cornell University, Erasmus University Rotterdam

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: hybrid

Estimated APC paid: $3,160