Catastrophic fires, human displacement, and real estate prices in California.

Millions of people are displaced by natural disasters each year, yet little is known about how evacuees affect host communities. We analyze the migratory effects of the most destructive fire in California history, the 2018 Camp Fire, which destroyed over 18,000 structures and displaced roughly 50,000 people. By merging geospatial information on the fire's footprint with Zillow's housing transaction data, we estimate both the spatial and temporal effects of the fire on real estate prices at a granular level. A number of important insights emerge. First, within 25 miles of the fire's footprint, home prices increased by 13 percent in the six-week aftermath of the fire. Effects decay with distance and are statistically insignificant beyond 100 miles. Second, effects are detected within two weeks of the fire, fully materialize within four weeks, and are persistent up to ten months (which exhausts our period of consideration). Results are consistent with the relocation decisions of evacuees and are robust to a variety of specifications and modeling assumptions. • The 2018 Camp Fire is the most destructive fire in California state history, having displaced roughly 50,000 people. • We study the migration of Camp Fire evacuees and the effect they had on neighboring housing markets. • Homes within 25 miles of the fire's footprint experienced a fairly sudden 13% increase in price. • Effects on real estate markets reach as far away as 100 miles, and are persistent (lasting up to at least 10 months after the fire). [ABSTRACT FROM AUTHOR]