The New Horizons Disaster Didn’t Just Harm The Environment: It Tanked Condo Prices Too [Infographic]

The BP oil spill in the Gulf of Mexico was one of the worst man-made disasters of recent history. More than 200 million barrels of oil leached out into the ocean, causing massive amounts of damage to local ecosystems. 

Fortunately, many of the worst-case scenarios at the time didn’t come to fruition. The oil spill didn’t cause catastrophic damage to ecosystems that many commentators expected. It did, however, have a negative impact on the housing market, causing prices to fall considerably in affected areas near the coast. 

For people who didn’t need to sell in 2010, 2011 and 2012, it wasn’t a big problem. But the disaster came hot on the heels of the financial crisis in which falling home prices forced many to foreclose. Among the most affected were African-American families, many of whom had to move out of their homes en masse. 

As the following infographic shows, the effect of the New Horizons disaster on house prices and sales volumes was dramatic. Prices fell between 5 and 9 percent, and volumes collapsed. 

The timing of the spill was also disastrous. The news broke in April, just a couple of months before condo rental season, where owners rent out their accommodation to holidaymakers keen to enjoy the stunning scenery of the Gulf of Mexico. Of course, with the oil slick making the headlines, fewer people were interested in Gulf holidays. 

Take a look at the following infographic and how it affected condo prices in and around the Gulf of Mexico.

 
Infographic by University of Alabama Birmingham