Assessing the housing price capitalization of non-destructive flooding events

Mitchell Livy

Research in Economics, 2023, vol. 77, issue 2, 265-274

Abstract: Flooding poses significant costs to communities and is expected to vary in intensity and severity in the future. Previous research has shown that major flooding events significantly affect housing markets; however, perceptions of non-destructive flooding events have not been adequately studied. In this paper, I examine the housing price capitalization of elevated river levels that did not reach the major flood stage to measure their influence on flooding risk perceptions. Estimates from a property fixed effects hedonic model provide evidence that housing prices respond heterogeneously to non-destructive flooding, with a negative and significant effect in the 100 year floodplain, but not the 500 year floodplain or other areas. These results show that a major event is not necessary for residents to update their beliefs and can inform future extreme natural event policy.

Keywords: Flooding; Housing; Extreme natural events (search for similar items in EconPapers)
JEL-codes: Q51 Q54 R21 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090944322000564
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:77:y:2023:i:2:p:265-274

DOI: 10.1016/j.rie.2022.10.003

Access Statistics for this article

Research in Economics is currently edited by Federico Etro

More articles in Research in Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().