Opioid Crisis and Real Estate Prices
75 Pages Posted: 12 Nov 2020 Last revised: 27 Apr 2022
Date Written: April 27, 2022
This paper exploits variation in opioid prescriptions induced by the staggered passage of opioid-limiting legislation to study the impact of opioid abuse on house prices. Our results suggest that the decrease in home values due to opioid abuse is driven by the increase in housing supply following mortgage default and foreclosure, and by the lowering of local area attractiveness. The negative effect of opioid abuse on house prices is attenuated in locations with stronger social support policies. Overall, we conclude that opioid abuse has significant long lasting negative economic effects that are mitigated if opioid supply is limited.
Keywords: Opioid crisis, real estate prices, health economics
JEL Classification: I10, I12, I18, R20, R30
Suggested Citation: Suggested Citation