BrokerageIndustry News

Gulf spill’s real estate damage estimate: $3B

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The BP oil spill's impact on home values in 15 coastal counties along the Gulf of Mexico could total $3 billion over five years, according to report released today by business information company CoreLogic. An additional $28 billion loss in values could also occur in the unlikely event that oil reaches communities around the Florida Keys and up the Atlantic coast, the report said.The report analyzed the spill's potential effect on home values in one Alabama county (Mobile); one Mississippi county (Harrison); and 13 Florida counties (Bay, Brevard, Broward, Collier, Duval, Escambia, Hillsborough, Lee, Miami-Dade, Monroe, Palm Beach, Pinellas, and Volusia).Specifically, CoreLogic measured the spill's impact on properties' economic value associated with beach access, which the company refers to as "beach amenity value." "Using well established economic techniques for the measurement of the economic value of environmental amenities, an estimate of the loss in beach ameni...