Date of Completion

Spring 5-17-2019

Thesis Advisor(s)

Kathleen Segerson

Honors Major

Economics

Second Honors Major

Accounting

Disciplines

Econometrics | Economics | Environmental Studies | Growth and Development | Other Economics | Public Economics | Regional Economics

Abstract

This paper investigates the premium paid for waterfront property along the Connecticut shoreline and how that premium is affected by its vulnerability to coastal flooding as measured by its location relative to the FEMA 100-year and 500-year flood zones. The primary analysis is a comparison of the rate of appreciation of properties within each flood zone relative to coastal properties outside the flood-zone. An analysis of the impact of Super Storm Sandy in 2012 on the appreciation rate is also presented. It is hypothesized that the rate of appreciation of properties within the 100-year flood zone is lower following Hurricane Sandy than preceding it, as the market discounts the at-risk properties in acknowledgement of the increasing flood risk. Additionally, if properties within the flood zone are appreciating at a lesser rate than those outside the flood zone it is assumed that this can be ascribed to a decrease in demand for these properties and effectively the market discounting them for their increased risk and associated costs.

Download

Share

COinS