This study examines the association between the location, relative to the coast, of an individual’s primary residence and the homeowners’ risk tolerance. Utilizing data from the 2021 National Financial Capability Study and employing a probit model, we analyzed how varying risk tolerance levels affect the likelihood of owning a home in a coastal ZIP code. The respondent’s risk tolerance was classified as high, medium, or low according to their self-reported willingness to take financial risks. Our results suggest that individuals with lower risk tolerances are less likely to own a home within a coastal ZIP code. Specifically, homeowners with medium-risk tolerance are 2.91% less likely, and those with low-risk tolerance are 3.17% less likely to own a primary residence in a coastal ZIP code when compared to those with high-risk tolerance. These results are statistically and economically similar when using a logit model. These findings are both statistically significant and align with economic theory. The analysis also included various demographic and socioeconomic factors, finding that age, income, and certain employment statuses influence coastal homeownership. This research contributes to the understanding of home ownership location choices and risk tolerance. Our results provide policymakers with insights into the risk characteristics of individuals who prefer coastal areas as their primary residences. This information can inform future policy decisions by highlighting the societal and economic implications of regulations related to residential coastal development.

Household composition in the United States is increasingly diverse; however, research into the diversity of the financial decision maker’s sexual orientation has yet to be explored. This analysis examines whether there are differences in financial risk tolerance between same-sex and different-sex couples using data from the Survey of Consumer Finances. The results from a propensity score matching technique, a Mann–Whitney U test, and interpretations of average treatment effects and average treatment effects of the treated suggest there is a statistical difference in risk tolerance between couples and that, on average, same-sex households are significantly more likely to report higher risk tolerance scores, at the 10% alpha level, when compared to their counterparts. Both treatment effect estimates suggest a high impact of the treatment at the 1% alpha level. This highlights the importance of not assuming homogeneous risk preferences across household types. These findings emphasize the importance of recognizing diversity in household composition. Thus, this study identifies the need for inclusiveness in all segments of financial planning.