Homes sell for 8.2 percent less after catastrophic floods_tio2 lattice parameters     DATE: 2022-08-18 00:31:04

February 15, 2022

Homes sell for 8.2 percent less after catastrophic floods

by University of Waterloo

Homes sell for 8.2 percent less after catastrophic floods
Credit: University of Waterloo

Flooding has pushed down housing prices in communities across Canada.

New findings show that over the past eight years, catastrophic flooding in communities resulted in an average 8.2 percent reduction in the final sale price of houses, 44.3 percent reduction in the number of houses listed for sale, and 19.8 percent more days on the market to sell a house.

These findings are presented in a new report from the Intact Centre on Climate Adaptation, University of Waterloo. The study focuses on five Canadian cities, each of which had experienced catastrophic flooding between 2009 and 2020: Grand Forks, B.C.; Burlington, Ontario; Toronto; Ottawa; and Gatineau, Que.

The impact of flooding was measured for periods of six months before and after flood events. Attribution of flood impacts was determined by comparing changes in nearby non-flooded control communities over identical time frames.

"The findings of this report do not surprise me," said Gary Will of Will Davidson LLP, a firm that advises on flood risk. "They underscore the impact on housing prices and the need to actively reduce flood risk through updated flood plain modeling and mapping, and to re-think development, without delay, as flooding affects everyone from planners, homeowners to government decision-makers."

The study also examined the impact of community-level flooding on mortgage arrears and deferrals in two Canadian cities for six months pre and post flooding. Results showed no change in homeowners' ability to pay their mortgage, but a reduction in the appraised value of a house due to flooding would influence limits on lending by mortgage providers.

As noted by Steve Mennill, Chief Climate Officer, Canada Mortgage and Housing Corporation (CMHC), "For most homeowners, their house is their biggest financial investment. As this report clearly shows, an all-of-society effort to protect that investment from the growing threat of flooding would be of great benefit to many Canadians."

Study co-author Dr. Blair Feltmate said, "Canada must learn to manage flood risk, rather than chase it. Recognizing that residential flooding is the most costly and pervasive impact of extreme weather, municipal planners should double-down on ensuring that adaptation factors into community design."

Actions recommended in the report to give Canadians guidance to limit flood risk include:


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More information:Treading Water: Impact of Catastrophic Flooding on Canada's Housing Market, www.intactcentreclimateadaptat … adas-housing-market/ Provided by University of Waterloo Citation: Homes sell for 8.2 percent less after catastrophic floods (2022, February 15) retrieved 15 February 2022 from https://phys.org/news/2022-02-homes-percent-catastrophic.html This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only. 0 shares