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 - 1979

Fingerprint

natural disaster
town
flooding
Values
assessment criteria
financial market
homeowner
effect
plain
valuation
subsidy
insurance
persistence
damages
hazard
damage

Keywords

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

ASJC Scopus subject areas

  • Earth-Surface Processes
  • Ecology
  • Water Science and Technology
  • Environmental Science(all)
  • Law

Cite this

@article{09006b506825482d942968cf273a8d1d,
title = "THE EFFECT OF FLOOD PLAIN LOCATION ON PROPERTY VALUES: THREE TOWNS IN NORTHEASTERN NEW JERSEY",
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.",
keywords = "flood plain management, land management, land use, nonstructural controls, property valuation",
author = "Rae Zimmerman",
year = "1979",
doi = "10.1111/j.1752-1688.1979.tb01178.x",
language = "English (US)",
volume = "15",
pages = "1653--1665",
journal = "Journal of the American Water Resources Association",
issn = "1093-474X",
publisher = "Wiley-Blackwell",
number = "6",

}

TY - JOUR

T1 - THE EFFECT OF FLOOD PLAIN LOCATION ON PROPERTY VALUES

T2 - THREE TOWNS IN NORTHEASTERN NEW JERSEY

AU - Zimmerman, Rae

PY - 1979

Y1 - 1979

N2 - 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.

AB - 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.

KW - flood plain management

KW - land management

KW - land use

KW - nonstructural controls

KW - property valuation

UR - http://www.scopus.com/inward/record.url?scp=0018766675&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0018766675&partnerID=8YFLogxK

U2 - 10.1111/j.1752-1688.1979.tb01178.x

DO - 10.1111/j.1752-1688.1979.tb01178.x

M3 - Article

AN - SCOPUS:0018766675

VL - 15

SP - 1653

EP - 1665

JO - Journal of the American Water Resources Association

JF - Journal of the American Water Resources Association

SN - 1093-474X

IS - 6

ER -