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Health Crisis and Housing Market Effects - Evidence from the U.S. Opioid Epidemic

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  • Walter D’Lima

    (Florida International University)

  • Mark Thibodeau

    (Florida International University)

Abstract

We present evidence on the effect of a public health crisis on housing markets through the lens of the recent opioid crisis in the U.S. Using data on opioid prescriptions and repeat sales in Ohio, we find that house price changes around opioid dispensaries are negatively associated with the quantity of opioids dispensed. To explore a causal inference, we use a potentially cleaner measure of supply that is based on vertical integration. We estimate that a one standard deviation increase in the standardized number of pills dispensed by vertically integrated pharmacies is associated with a 5.8% decrease in house price appreciation. Our work informs the broader policy discussion on economic costs resulting from health crises.

Suggested Citation

  • Walter D’Lima & Mark Thibodeau, 2023. "Health Crisis and Housing Market Effects - Evidence from the U.S. Opioid Epidemic," The Journal of Real Estate Finance and Economics, Springer, vol. 67(4), pages 735-752, November.
    • Handle: RePEc:kap:jrefec:v:67:y:2023:i:4:d:10.1007_s11146-021-09884-8
    DOI: 10.1007/s11146-021-09884-8
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    References listed on IDEAS

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    1. Case, Karl E & Shiller, Robert J, 1989. "The Efficiency of the Market for Single-Family Homes," American Economic Review, American Economic Association, vol. 79(1), pages 125-137, March.
    2. Wong, Grace, 2008. "Has SARS infected the property market Evidence from Hong Kong," Journal of Urban Economics, Elsevier, vol. 63(1), pages 74-95, January.
    3. Abby Alpert & William N Evans & Ethan M J Lieber & David Powell, 2023. "Origins of the Opioid Crisis and its Enduring Impacts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(2), pages 1139-1179.
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