The effects of flooding on residential property values in three new zealand communities

Research on the effects of natural events on property values has focused primarily on experiences in the United States and has shown that these impacts must be evaluated in the context of both the hydrologic regime and local urban economic situations. It remains unclear if these relationships exist with different flood regimes and under different institutional arrangements. The research reported here analyzes the impacts of flooding on property values in Paeroa, Te Aroha, and Thames, New Zealand. The results indicate different experiences in the three communities, but suggest several common trends. Each community has distinct housing submarkets that exhibit different housing value characteristics, independent of hazardousness, which may either mask or exaggerate flood-related impacts. In addition, initial local impacts of events vary, but eventually differences in flooded and non-flooded properties decrease. Thus, at least over the long term, hazardousness is not a factor in housing value differentials.