Floodplains and housing values: Implications for flood mitigation projects

Steven D. Shultz, Pat M. Fridgen

Research output: Contribution to journalArticle

23 Scopus citations

Abstract

The hedonic valuation method was used to quantify the impact of floodplain location on housing values in Fargo-Moor-head. Being located in the 100-year floodplain lowered the home values by $8,990, and such homes were worth $10,241 less than similar homes located outside the floodplain before the major flood event of 1997. Required flood insurance premiums for these homes were determined to account for approximately 81 percent of this price depreciation. In contrast, homes in the 500-year floodplain were worth $3,100 more than similar homes not in the floodplain. It was concluded that more disclosure is needed regarding the location of the 500-year floodplain, and that the hedonic valuation method can be used to calculate the economic gains and losses associated with flood mitigation projects or floodplain remapping efforts that result in the reclassification of the legal floodplain status of individual homes.

Original languageEnglish (US)
Pages (from-to)595-603
Number of pages9
JournalJournal of the American Water Resources Association
Volume37
Issue number3
DOIs
StatePublished - 2001

Keywords

  • Economics
  • Flood mitigation projects
  • Hedonic valuation method
  • Housing values
  • Water resources planning

ASJC Scopus subject areas

  • Ecology
  • Water Science and Technology
  • Earth-Surface Processes

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