IMPACT OF FLOOD HAZARD ON RESIDENTIAL PROPERTY VALUES IN GALT (CAMBRIDGE), ONTARIO1

ABSTRACT: This study is an examination of the relationship between flooding and property values for an urban community in southwestern Ontario which has a lengthy history of flooding. As well, peoples’perceptions of the effect of flooding on property values is discussed. Analysis of sales prices and assessment data demonstrated no statistically significant differences in values of property for residences located in high- and low-risk areas either before or after a major flood in 1974. With both the high- and low-risk areas, sales prices after the 1974 flood were significantly higher than sales prices before the flood. The perceived property values followed a similar pattern. We concluded that differences in flood risk and flood experience did not adversely affect actual or perceived long-term property values.