MANAGEMENT OF FLOODING IN A FULLY-DEVELOPED,LOW-COST HOUSING NEIGHBORHOOD1

ABSTRACT: Within the flood plain of the lower reach of Peaks Branch, a stream in east Dallas Texas, 500 buildings would be partially inundated by the 100-year flood. The fully-developed watershed and flood plain mainly accommodate low-cost housing. Eight alternative flooding remedies, ranging from no action to stream channelization to complete redevelopment, are considered. The alternates are evaluated in terms of their relative safety, effects on neighborhoods, required relocations of families and businesses, initial costs, and maintenance costs. Creation of a stream-side greenway, offering lakes and parks, is recommended. This plan best balances costs and required relocations with community benefits, including flood protection.     

HEDONIC PRICE ANALYSIS OF THE EFFECT OF A FLOODPLAIN ON PROPERTY VALUES1

ABSTRACT: The effect of a floodplain location on the market value for property is controversial, with the conventional wisdom being that buyers are myopic. Previous parametric and nonparametric statistical tests have proven inconclusive in deciding the issue. Herein, a theoretical model, that of hedonic price indexes, is posited and tested, using housing sales characteristics data obtained from a Multi-List Service cooperative. This study suggests that home buyers do adjust the purchase price for houses within a floodplain, and this amounts to, on average, just over 12 percent. The data are from a small midwestern town in which the last severe flooding occurred a decade ago.