Floods and Residential Property Values: A Hedonic Price Analysis for the Netherlands

Daniel, Vivek; Florax, Raymond J.G.M.; Rietveld, Piet

doi:10.2148/benv.35.4.563

Cited by 30 publications

(33 citation statements)

References 26 publications

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“…On the contrary, as we move 10% further away from the nearest large river, house prices increase with 0.004%. Although this is a relatively small price increase, this positive relationship may hint at the possible impact of flood risks on house prices [ Daniel et al ., ]. Switzerland is subject to riverine flooding on an annual basis [ Hausmann et al ., ], and the greatest flood catastrophe of the last 40 years took place in 2005.…”

Section: Resultsmentioning

confidence: 99%

Valuing water resources in Switzerland using a hedonic price model

Dijk

Siber

Brouwer

et al. 2016

Water Resources Research

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In this paper, linear and spatial hedonic price models are applied to the housing market in Switzerland, covering all 26 cantons in the country over the period 2005-2010. Besides structural house, neighborhood and socioeconomic characteristics, we include a wide variety of new environmental characteristics related to water to examine their role in explaining variation in sales prices. These include water abundance, different types of water bodies, the recreational function of water, and water disamenity. Significant spatial autocorrelation is found in the estimated models, as well as nonlinear effects for distances to the nearest lake and large river. Significant effects are furthermore found for water abundance and the distance to large rivers, but not to small rivers. Although in both linear and spatial models water related variables explain less than 1% of the price variation, the distance to the nearest bathing site has a larger marginal contribution than many neighborhood-related distance variables. The housing market shows to differentiate between different water related resources in terms of relative contribution to house prices, which could help the housing development industry make more geographically targeted planning activities. Key Points:Most variation in house prices is explained by structural house characteristics Significant effects are found for water abundance and the distance to large rivers The distance to the nearest bathing site has the largest marginal contribution

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Section: Resultsmentioning

confidence: 99%

Valuing water resources in Switzerland using a hedonic price model

Dijk

Siber

Brouwer

et al. 2016

Water Resources Research

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“…In this issue Daniel et al (2009) conclude that their 9 per cent discount for houses affected by the floods of the River Meuse in the Netherlands is relatively high in international comparison. Surprisingly, studies of flooding in the European context are rare.…”

Section: Negative Impactsmentioning

confidence: 90%

Water in Residential Environments

Kauko¹,

Goetgeluk²,

Priemus³

2009

built environ

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In the Netherlands, the estimated rise in sea level together with more irregular and heavier river flows and rainfall require new policies. In particular the region in the western and central part of the country, known as Randstad-Holland, is facing new challenges to cope with water. Do residents move to safe areas as a consequence of this development? At the same time we may observe an increasing consumer popularity of housing areas situated by the coast, lakes, rivers and canals. The mostly American literature on the value attributable to having water in the vicinity of one's home suggests that various externalities increase or decrease the attractiveness of a given location, and thereby bring a positive or negative added value to property prices, depending on a number of factors in relation to water proximity, view, water quality, and flood risk. We argue that this literature falls short as the studies do not fit well with the Randstad circumstances. Furthermore, even for studies where comparable effects are identified any generalizations are difficult, particularly with the proximity variable.

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“…Examples of studies investigating the latter hypothesis can be found in the voluminous hedonic-pricing literature (Bin and Polasky 2004;Bin et al 2008;Bin and Landry 2013;Atreya et al 2013;Daniel et al 2009b). These studies typically investigate whether disasters such as floods lead to house price disparities between risky and non-risky locations.…”

Section: Household Migration and Risk Judgmentsmentioning

confidence: 99%

Household migration in disaster impact analysis: incorporating behavioural responses to risk

Husby

Koks

2017

Nat Hazards

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Detailed estimates of economy-wide disaster losses provide important inputs for disaster risk management. The most common models used to estimate losses are inputoutput (IO) and computable general equilibrium (CGE) models. A key strength of these models is their ability to capture the ripple effects, whereby the impacts of a disaster are transmitted to regions and sectors that are not directly affected by the event. One important transmission channel is household migration. Changes in the spatial distribution of people are likely to have substantial impacts on local labour and housing markets. In this paper, we argue that IO and CGE models suffer from limitations in representing household migration under disaster risk. We suggest combining IO and CGE models with agent-based models to improve the representation of migration in disaster impact analysis.

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Floods and Residential Property Values: A Hedonic Price Analysis for the Netherlands

Cited by 30 publications

References 26 publications

Valuing water resources in Switzerland using a hedonic price model

Valuing water resources in Switzerland using a hedonic price model

Water in Residential Environments

Household migration in disaster impact analysis: incorporating behavioural responses to risk

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