Researcher ORCID Identifier

0009-0008-6440-1379

Graduation Year

2025

Date of Submission

4-2025

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Peter Kelly

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Rights Information

2025 Caleb D Chang

Abstract

This thesis examines the impact of FEMA-declared disasters on home values in the United States, using the annual change in the FHFA House Price Index (HPI) as the primary outcome. I find that a FEMA-declared disaster leads to a decrease of 0.642 in the annual change in HPI two years after the event, reflecting delayed housing market frictions. The analysis then examines FEMA disaster aid’s role in post-disaster outcomes. A full increase in the ratio of aid received to damage assessed (from no coverage to full coverage) is associated with a 0.779 decrease in the annual change in HPI during the disaster year, likely reflecting underlying damage severity rather than aid effects. Conversely, a full increase in the ratio of individuals receiving aid to those with valid registrations is associated with a 1.61 increase in the annual change in HPI four years after the disaster, suggesting broader aid access supports long-term market stabilization. The study also evaluates two major policy reforms: the Sandy Recovery Improvement Act (SRIA) of 2013 and the Disaster Recovery Reform Act (DRRA) of 2018. I find that ZIP codes experiencing disasters after SRIA saw an increase of 0.731 in the annual change in HPI during the disaster year, while the DRRA had no significant effect. Finally, I examine political influences on aid distribution. Although Democratic- voting counties had a 1.75% lower approval rate for FEMA registrations, there was no significant difference in aid awarded, suggesting disparities stem from registration patterns rather than systematic bias.

Download

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

Share

COinS