The Effects of Earthquake Retrofit on the Resale Value of Single-Family Dwellings

Seismic retrofits aim to reduce future damage caused by earthquakes, which in turn reduce the cost of rebuilding. This research asks the question: does seismic retrofit affect the resale value of single-family dwellings? Using only publicly available real estate sales listings and other public databases, location, price, and market features of retrofitted and non-retrofitted homes in California were collected and tabulated. The data were then examined through multivariate linear regression analysis to quantify the effect that retrofit has on the resale value of single-family dwellings. In the analysis, the resale value acted as the dependent variable. Retrofit and other home features such as size, number of bedrooms, number of bathrooms, neighborhood household income, and others acted as the independent variables. The analysis suggests that in 2020 in California, seismic retrofit increases the resale value of home by 9.85%, significantly higher than the average cost to perform the retrofit. Equipped with this knowledge, lawmakers, engineers, and real estate professionals can entice existing and new homeowners to consider the benefits of seismically retrofitting their homes.