Data/hora: 11/06/2024 06:21:35

Provedor de dados: | 31
País: | United States
Título: | THE INFLUENCE OF THE THREAT OF FLOODING ON HOUSING VALUES IN FARGO, NORTH DAKOTA AND MOORHEAD, MINNESOTA
Autores: | Fridgen,   Patrick M.; Shultz,   Steven D.
Data: | 1999-06-24
Ano: | 1999
Palavras-chave: | Hedonic valuation method; Flooding; Floodplain; Fargo; Moorhead; Red River of the North; Housing values; Community/Rural/Urban Development.
Resumo: | The hedonic valuation method (HVM) was used to quantify the impact of the threat of flooding on housing values in Fargo, North Dakota and Moorhead, Minnesota  (Fargo-Moorhead).  Prices of  3,783 Fargo-Moorhead homes sold between 1995 and 1998 were regressed against structural housing characteristics, neighborhood and environmental indicators, and three flood risk variables.  Being located in the 100-year floodplain lowered the sale price of an average home by $8,990 and approximately 81 percent of the price depreciation was associated with required flood insurance premiums. After the extensive 1997 flood, homes in the 100-year floodplain were on average priced  $10,241 less than similar homes located outside the floodplain and before the 1997 flood event.  The aftermath of publicity of the 1997 flood was specifically responsible for average 100-year floodplain homes being reduced by an additional $1,350.  In contrast, homes in the 500-year floodplain on average sold for $3,100 more than similar homes not in the floodplain.  It was concluded that homebuyers in Fargo-Moorhead place a value on flooding risk, that more disclosure is needed regarding the location of the 500-year floodplain, and that substantial housing value related benefits are likely to be generated by various flood mitigation projects in the area that result in a re-designation and reduction of the 100-year floodplain.
Tipo: | Working or Discussion Paper
Idioma: | Inglês

Identificador:

1565

http://purl.umn.edu/23155

Editor: | AgEcon Search

Relação:

North Dakota State University&gt;Department of Agribusiness and Applied Economics&gt;Agricultural Economics Reports

Agricultural Economics Report 417

Formato:

20

application/pdf