Research Finds Homeowners Use Credit Strategically to Recover from Hurricanes
Research Finds Homeowners Use Credit Strategically to Recover from Hurricanes
Even with insurance and government aid, the financial strain can be overwhelming. So, how are homeowners managing to rebuild their lives?
New research by Alejandro del Valle and Stephen Shore of Robinson’s Greenberg School of Risk Science and Tess Scharlemann of the Federal Reserve Board explored this question by examining the financial responses of households to the flooding caused by Hurricane Harvey.
Their research, recently published in the Journal of Financial and Quantitative Analysis, reveals that many homeowners strategically used credit to manage recovery costs while avoiding high-interest debt.