This study examines the relationship between climate policy uncertainty (CPU) and residential housing prices across U.S. metropolitan areas using the U.S. CPU index developed by Gavriilidis in 2021 and monthly S inland growth markets display housing prices → CPU feedback, likely operating through political economy channels; Midwest extreme-weather markets show persistent transmission despite their non-coastal locations; recession-sensitive markets become CPU-responsive following the Great Recession; and insulated markets show no significant transmission. The findings indicate that CPU operates as a priced systematic risk factor requiring integration into housing finance oversight, macroprudential frameworks, and investment strategies. These results have important implications for financial stability monitoring, mortgage credit risk assessment, and climate policy design as markets navigate transition risks in a low-carbon economy.
Batabyal et al. (2026) studied this question.