Opioid Crisis and Real Estate Prices *
84 Pages Posted: 12 Nov 2020 Last revised: 7 Apr 2025
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Opioid Crisis and Real Estate Prices *
Opioid Crisis and Real Estate Prices
Date Written: February 21, 2024
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.
Keywords: Opioid crisis, real estate prices, health economics
JEL Classification: I10, I12, I18, R20, R30
Suggested Citation: Suggested Citation