Honors Project On-Campus Access Only
Applying a difference-in-differences framework to property-level repeat sales transaction data, this paper estimates the price effect of floodplain designations in Miami-Dade County, Florida (1994-2017). I use neighborhood and property characteristics to control for their effects on housing value. I find that there is no price discount on properties that experience an upward risk valuation after controlling for their distance to coast. Using propensity score matching, I similarly find no evidence that there is a relationship between property value and upward flood risk. The lack of effect suggests that people may be cushioned from increases in insurance premia via grandfathering rights and subsidies, and homebuyers may be uninformed of flood hazard and insurance requirements when purchasing properties.
Kim, Euijin, "Does a Change in Floodplain Designation Affect Property Value?: Evidence from Miami-Dade County" (2019). Economics Honors Projects. 100.
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