Effects of Climate Change Hit Home(s)
New research exposes the link between rising tides and coastal real estate values.
Evidence of the threat of rising sea levels and their negative impact on the value of coastal real estate is mounting.* This is particularly noteworthy since, according to the National Oceanic Atmospheric Association, nearly 40% of the U.S. population lives in relatively high-population-density coastal areas, where sea level plays a role in flooding, shoreline erosion and storm hazards, and sea levels are rising globally at about one-eighth of an inch
Leeds School of Business Assistant Professors Asaf Bernstein and Ryan Lewis, in collaboration with the Pennsylvania State University’s Professor Matthew Gustafson, recently published “The Price Effect of Sea Level Rise” in the Journal of Financial Economics, which indicates concerns about sea level rise (SLR) in the U.S. are already affecting home values. They found that homes vulnerable to the effects of SLR sold for 6.6% less than unexposed homes, and the most vulnerable properties—those that stand to be flooded after one foot of SLR—are selling at a 14.7% discount. These discounts are driven by wealthy investors, who often are buying a second home or rental property and demand a lower price to offset the potential risks. (Conversely, less sophisticated home buyers did not show the same concerns of climate change and SLR affecting real estate.)Earlier this year, Bernstein, Lewis and Gustafson’s paper was awarded second place and $25,000 from AQR Capital Management for the AQR Insight Award, which honors exceptional academic papers offering innovative, intelligent approaches to investment issues. Their work underscores the distinct relationship between financial markets and effects of climate change on coastal real estate prices, primarily in the gulf region, Washington state and along the eastern seaboard. Importantly, these findings also suggest there are benefits to establishing policies now, such as requiring increased transparency in coastal real estate transactions, which may help mitigate future costs of climate change.
Currently, there’s still a demand for coastal real estate, although the markets have slowed for the more-exposed properties. For many, it appears the allure of owning a beachfront property still outweighs the potential risks associated with SLR. Ultimately, the more climate change intersects with economics, the more tangible these costs will become for consumers to grapple with and policy makers to address.
*As corroborated by the latest federal climate assessment (NCA4, Vol. 2, released Nov. 2018).
Leeds’ 2019 Frascona Award Winner
280 nominations of 95 faculty: Senior Instructor Liz Stapp rose to the top.
Students describe her as inspiring, dedicated to her students and wildly passionate about teaching business ethics. Liz Stapp, who is also Leeds’ faculty director of First- and Second-Year Curriculum, uses real examples from her connections with industry in the classroom to bring concepts to life for her students. That’s just one of the reasons out of the three finalists (including Professors Rob Dam and Don Oest), Stapp received the 2019 Frascona Teaching Excellence Award, which is presented to one Leeds faculty member at the end of each school year.
Stapp is humble when she speaks about receiving the award. “This is a huge honor because it factors in both student nominations and faculty evaluations,” she says. “The award also highlights how much teaching matters at this university.”
We couldn’t agree more. From all of us at Leeds, congratulations, Liz Stapp!
Think Quality Over Quantity When It Comes
to Team Communication
What you say to your teammates goes a long way toward your group’s success.
Teamwork and the ability to communicate effectively in teams are skills highly valued and sought out by today’s employers.
New research published by Assistant Professor of Organizational Behavior Christina N. Lacerenza and colleagues from Rice University and the University of Central Florida analyzes the relationship between team communication and performance, and provides practical insights for organizations relying on the work of effective teams. Their paper, “Does team communication represent a one-size-fits-all approach,” published in the journal Organizational Behavior and Human Decision Processes, details their meta-analytic* review of 150 primary studies with data from over 9,700 teams.
“With technology, we generally have 24/7 access to our team members, which has led to the assumption that more communication is always better,” says Lacerenza. “This is not the case for teamwork. In teams, the quality of communication is what matters most for performance—not the frequency by which members communicate.”
In effective, high-performing teams, members openly share their specialized knowledge, discuss task-related issues and expand upon their ideas and opinions, explains Lacerenza. Accordingly, organizations should ensure their teams know how valuable communication is to their success and provide support to teams who struggle to develop these skills. In the case of teams who communicate primarily through virtual tools, the opportunity for in-person meetings, occasionally or at the outset, may also improve their overall group performance. The key takeaway: Getting to know your teammates and including a bit of face time into your group activities will positively influence your collective communication and, in turn, your team’s success.
*A meta-analysis is a statistical approach that combines data from multiple studies to increase validity and, therefore, the reliability of information.