THE EFFECT OF FLOOD PLAIN LOCATION ON PROPERTY VALUES: THREE TOWNS IN NORTHEASTERN NEW JERSEY

Research output: Contribution to journalArticle

Abstract

ABSTRACT: The persistence of development and settlement in flood plains and continued damages from flooding, raises the question of how property owners respond to flood plain location and whether property values reflect this response. Existing studies disagree on the significance of flood hazard for property values. This study evaluates the effect of flood plain location on assessed valuation and home value in three towns in New Jersey. A t‐test on mean assessed value and value of owner‐occupied units at block levels showed no statistically significant variation for flood prone and nonflood prone lands. Possible explanations are that homeowners do not know or perceive the risk of living in flood plains, assessors do not incorporate flooding into assessment criteria, and the National Flood Insurance Program subsidies and broadened financial markets may equalize property values.

Original languageEnglish (US)
Pages (from-to)1653-1665
Number of pages13
JournalJAWRA Journal of the American Water Resources Association
Volume15
Issue number6
DOIs
StatePublished - Dec 1979

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Keywords

  • flood plain management
  • land management
  • land use
  • nonstructural controls
  • property valuation

ASJC Scopus subject areas

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

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