Flood risk and residential <scp>real‐estate</scp> prices: Evidence from three <scp>US</scp> counties

Abstract This article analyzes residential property transactions to better understand the impact of urban flooding events and distributions on floodplain real‐estate markets. We studied patterns before after major fluvial in three counties that experienced such between 2009 2013: Benton County, Oregon; Boulder Colorado; Cass North Dakota. tested for presence distribution price discounting following these flood using a hedonic difference‐in‐difference regression model. Floodplain discounts were detected all counties, over full study period, including flooding. However, only County exhibited statistically significant discount wake event at center our analysis, with prices falling by 6.26% 100‐year until they rebounded approximately 2–3 years. In we not able detect post‐flood effect, but throughout period 9.4% lower compared comparable properties outside floodplain. weaker 500‐year floodplain, large control project was widely discussed event, which may have prevented widespread discounting. The case confirms phenomenon real estate subsequent rebound, as documented other researchers. two studies, interestingly, document is universal. suggest difference seems be explained differing levels pre‐flood local flood‐risk awareness, along magnitude triggering event. new availability nationwide data allows more detailed assessment important distinctions.