THE INFLUENCE OF THE THREAT OF FLOODING ON HOUSING VALUES IN FARGO, NORTH DAKOTA AND MOORHEAD, MINNESOTA
| dc.creator | Fridgen, Patrick M. | |
| dc.creator | Shultz, Steven D. | |
| dc.date | 2017-04-01T14:11:25Z | |
| dc.date.accessioned | 2026-07-09T03:42:25Z | |
| dc.description | 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. | |
| dc.identifier | doi:10.22004/ag.econ.23155 | |
| dc.identifier | https://ageconsearch.umn.edu/record/23155/files/aer417.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/23155 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/538584 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/23155 | |
| dc.title | THE INFLUENCE OF THE THREAT OF FLOODING ON HOUSING VALUES IN FARGO, NORTH DAKOTA AND MOORHEAD, MINNESOTA | |
| dc.type | Text |