Ryan G. Miller, PhD.

Flood risk and residential real-estate prices: Evidence from three US counties

This article analyzes residential property transactions to better understand the impact of urban flooding events and property distributions on the floodplain on real-estate markets. We studied patterns before and after major fluvial flooding events in three counties that experienced such events between 2009 and 2013: Benton County, Oregon; Boulder County, Colorado; and Cass County, North Dakota. We tested for the presence and distribution of price discounting before and following these flood events using a hedonic difference-in-difference regression model. Floodplain discounts were detected in all three counties, over the full study period, including before and after flooding.