UConn Today – The power of a tornado can inflict tremendous damage on residential property, but the impact is also felt by nearby homeowners, even when their property is unscathed.
Undamaged homes in close proximity to those that were partially or fully destroyed incur up to a 39% decline in value, according to finance and real estate professor Jeffrey P. Cohen, associate economist Violeta A. Gutkowski, and research associate Jack Fuller. Their findings were released in a recent economic report by the Federal Reserve Bank of St. Louis, where Cohen is a Research Fellow.