IDEAS home Printed from https://ideas.repec.org/a/taf/rsrexx/v10y2018i1p135-162.html
   My bibliography  Save this article

The Impact of Flood Zones on Residential Property Prices: The Case of Canada

Author

Listed:
  • Philippe Bélanger
  • Michael Bourdeau-Brien
  • Maxence Dumestre

Abstract

We investigate the impact of flood risk on the Canadian housing market. We combine a variety of large heterogeneous sets of data, both structured and unstructured, that allows taking into account key drivers of properties value that are otherwise difficult to control for. We infer the findings from two distinct samples composed of properties for sale and properties sold. The results suggest that high-risk location commands an average price discount of 4% even though overland flood insurance protections are mostly nonexistent in Canada. Such a discount is both economically and statistically significant and robust to the use of alternative modeling strategies. Interestingly, the discount is larger for the sold than the for sale sample, which indicates that homebuyers are aware of high-risk flood areas.

Suggested Citation

  • Philippe Bélanger & Michael Bourdeau-Brien & Maxence Dumestre, 2018. "The Impact of Flood Zones on Residential Property Prices: The Case of Canada," Journal of Sustainable Real Estate, Taylor & Francis Journals, vol. 10(1), pages 135-162, January.
    • Handle: RePEc:taf:rsrexx:v:10:y:2018:i:1:p:135-162
    DOI: 10.1080/10835547.2018.12091907
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2018.12091907
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2018.12091907?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsrexx:v:10:y:2018:i:1:p:135-162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsre20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.