Jingzhou Wang, PhD candidate in Energy, Environmental and Food Economics at Penn State University, will present the EEEP Seminar Series, “Flood Risk and Housing Markets without Flood Insurance: Evidence from 1930s Pittsburgh” on September 9, 2026.
Abstract:
This study builds on a logic of repeat-sales framework to evaluate the impact of the 1936 St. Patrick’s Day flood on housing market outcomes in Pittsburgh. In addition, we examine the capitalization of flood risk in Pittsburgh’s pre-disaster housing market using a hedonic model. Our preliminary findings indicate that properties located within inundated areas experienced a 3.63% decline in housing values and monthly rents relative to comparable properties in unaffected areas. Applying these estimated discounts to inundated properties in our sample, we calculate flood-induced housing wealth losses of approximately $29,196.29 for owner-occupied properties and $43,426.16 for rental properties. Total losses are estimated at $72,622.45 in 1930 dollars, equivalent to roughly $1.40 million in 2025 dollars after adjusting for inflation.
We also found evidence that homeowners recognized flood risk at a broad geographic scale but lacked precise knowledge of flood hazards. Specifically, owner-occupied properties located in Enumeration Districts that intersect the 100-year floodplain sold at an average discount of 8.30% relative to comparable properties. By contrast, we find little evidence of flood-risk capitalization in the rental market, suggesting that renters were less responsive to flood hazards.
Bio:
Mr. Wang’s research interests center on the intersection of environmental economics and economic history, with a particular focus on the effects of historical flood events on housing markets and migration. He received his M.S. in Economics from China University of Petroleum-Beijing and his B.S. in Economics from Dongbei University of Finance and Economics, both in China.”