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Marketing Letters

22-11-2024 | Original Research

Mass shooting, gender, and housing price disparities

Authors: Yongseok Kim, Junyeol Ryu, Myongjin Kim, Suman Basuroy

Published in: Marketing Letters

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Abstract

This research delves into the diverse effects of mass shootings on the real estate market, specifically examining the gender dynamics at play. We use a difference-in-differences identification strategy in the context of the mass shooting in 2000, in Wakefield, Massachusetts. Our primary finding indicates that, following the mass shooting, house prices in Wakefield decline by about 4.7% and that males are in a better advantageous position with respect to negotiations in comparison to their female counterparts. Our investigation unveils that the bargaining power of a male seller exceeds that of a male buyer. Additionally, possessing prior transactional experience positively correlates with enhanced outcomes in housing transactions.

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There is no strict standard definition of mass shootings, and different data sources use slightly different definitions (Smart & Schell, 2021).

This source defines mass shootings as any incident of gun violence in which a minimum of four victims are shot, whether injured or killed, not including any shooter who also might have been killed or injured in the incident (https://www.gunviolencearchive.org/explainer).

See https://www.gunviolencearchive.org/reports/mass-shooting?year=2023

See https://en.wikipedia.org/wiki/Edgewater_Technology_shooting

See https://www.neighborhoodscout.com/ma/wakefield/crime#description

See https://caselaw.findlaw.com/court/ma-supreme-judicial-court/1448833.html

This study is part of a larger project titled “Gender Disparity in the US Housing Market,” for which the use of the derivative outputs was sanctioned by ZTRAX.

We demonstrate that our findings are robust to an alternative specification with house fixed effects, year fixed effects, and zipcode-specific month fixed effects.

We demonstrate that our findings in columns 1, 2, and 3 in Table 4 are all robust to an alternative specification with house fixed effects, year fixed effects, and zipcode-specific month fixed effects.

Male buyers experience a 12.9% greater price reduction compared to female buyers, while male sellers secure 43.8% higher prices than their female counterparts. These results highlight that male participants, particularly sellers, are more effective at leveraging the negative shock of mass shootings in housing transactions. Moreover, sellers with prior transaction experience can further mitigate the negative effects on housing prices.

We demonstrate that our findings in columns 1, 2, and 3 in Table 5 are all robust to an alternative specification with house fixed effects, year fixed effects, and zipcode-specific month fixed effects.

For example, in 2021, the housing market accounted for 16.7% of the US gross domestic product (Weinstock, 2023).

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Title: Mass shooting, gender, and housing price disparities
Authors: Yongseok Kim
Junyeol Ryu
Myongjin Kim
Suman Basuroy
Publication date: 22-11-2024
Publisher: Springer US
Published in: Marketing Letters
Print ISSN: 0923-0645
Electronic ISSN: 1573-059X
DOI: https://doi.org/10.1007/s11002-024-09755-1