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I'd have to read the smoke plumes paper - but it does seem interesting. Based on my understanding of the broad research, housing prices (and rents) are tied to local current+future income. If more particulates in the air reduce wages (both in the short run and long-run via child development), it's not surprising to see house prices fall more.

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Honestly, that makes a lot of sense. Demand for real estate will likely be proportional to your opportunities and earning potential from the area.

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