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

Abstract

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 economies 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 submarket 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 are found when comparing housing in residential markets with those in dynamic versus more languid vacation housing markets. Damage, tenure, minority population, and income all have significant effects on trajectories with varying directions 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.