Managed Retreat and Flood Recovery: The Local Economic Impacts of a Buyout and Acquisition Program
This working paper evaluates the property- and neighborhood-level impacts of a buyout and acquisition program in New York State following Hurricane Sandy.
Abstract
Numerous coastal communities are grappling with the challenge of adapting to escalating disaster risks while maintaining a robust local economy. We study a major buyout and acquisition program in New York State following Hurricane Sandy and evaluate its impacts on a variety of property- and neighborhood-level outcomes. We find that the program generally increases nearby property values on average and also improves business performance and urban amenities in the broader neighborhood. These neighborhoods also attract higher-income property buyers. Compared to buyouts, home acquisitions—which facilitate resilient redevelopment of government-acquired properties—predominantly drive the positive economic effects. Our research design accounts for the confounding effects of Hurricane Sandy’s destruction. By providing some of the first estimates on the general equilibrium effects of buyout and acquisition programs, our findings offer a more holistic perspective on their role in shaping the socioeconomic landscape of communities.
