20.07.2013 Views

Is My Drywall Chinese? - HB Litigation Conferences

Is My Drywall Chinese? - HB Litigation Conferences

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Home H Value Over 10 Yeaars<br />

How does <strong>Chinese</strong> drywall impact home values?<br />

Engineering/architectural studies of stigma<br />

Recognizes that “remediation” ≠ “cure”<br />

Residual damages result in a foreshortening of<br />

the economic life of the structure<br />

Homeowners are paying too much to live in a<br />

home which will deteriorate faster than<br />

normal and/or require above average<br />

lifetime maintenance<br />

200,000<br />

150,000<br />

100,000<br />

50,000<br />

How do we separate the <strong>Chinese</strong> drywall impact<br />

from the overall market meltdown?<br />

0<br />

Unimpaired Value Growing 5% per year<br />

Impaired Value Growing 5% per year<br />

1 2 3 4 5 6 7 8 9 10 11<br />

Helpful to reflect back on the earlier<br />

stigma slide<br />

7

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