Flood risk and housing prices: Evidence from Hungary

Arbeitspapier

This study employs the hedonic property price method to analyze the flood risk effect on a rich set of data. The analysis is carried out on Hungary, but as the control variables are extremely elaborated, our results have general importance. The paper finds a significant reduction in housing prices accounted to ZIP code level flood risk even after controlling for a wide range of geographical and socio-economic features. This paper finds that flood risk reduces housing prices substantially. It turns out that the average elasticity is driven by being in close proximity of major rivers. While riverside areas have an overall price premium in Hungary, risky areas loose this advantage to flood risk. In ZIP code areas where the inundation depths are 10% higher, housing prices tend to be 1% lower on average plus another 1% lower along the major rivers.

Angaben zum Objekt

• ISBN: 978-615-5594-56-4
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IEHAS Discussion Papers ; No. MT-DP - 2016/20

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Valuation of Environmental Effects ; Climate; Natural Disasters and Their Management; Global Warming ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General ; Housing Supply and Markets
• Thema: housing ; hedonic pricing ; flood risk ; geography

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Békés, Gábor ; Horváth, Áron ; Sápi, Zoltán
• Ereignis: Veröffentlichung
• (wer): Hungarian Academy of Sciences, Institute of Economics
• (wo): Budapest
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/190444
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ