Housing Recovery after Disasters: Primary versus Seasonal/Vacation Housing Markets in Coastal Communities

Abstract

<p>Recovery of seasonal housing after disasters is driven by different types of decisions and resource streams than those of year-round homes. Given the importance of seasonal rentals in the economy of coastal and particularly island communities, understanding the levels and recovery trajectories of seasonal housing may inform overall recovery expectations. The authors report findings from an empirical study of impact and recovery trajectories for owner-occupied and rental single-family housing in housing sub-market areas in Galveston, Texas following Hurricane Ike using random effects panel models to predict the parcel-level values over an eight-year period. Divergent impact and recovery trajectories and processes were found when comparing housing in residential markets with those in dynamic versus more languid vacation housing markets. Damage, tenure, minority population, and income all had significant effects on trajectories with varying direction and magnitudes across submarkets. These differences in the mechanisms of submarkets and vulnerability in recovery trajectories of coastal communities highlight the importance of mapping the influential factors in each area to target mitigation and recovery assistance effectively.</p>