The impacts of catastrophic floods on consumers and homeowners are far-reaching
On average, Canadian homes sell for 8.2% less after catastrophic floods, according to new research by the University of Waterloo’s Intact Centre on Climate Adaptation.
These disasters also lead to an approximately 44.3% reduction in the number of houses listed for sale in the affected regions, and a 19.8-day increase in the average duration to sell a house, the researchers said.
“[The results of the study] underscore the impact on housing prices and the need to actively reduce flood risk through updated flood plain modelling and mapping, and to re-think development, without delay, as flooding affects everyone from planners, home owners, to government decision-makers,” said Gary Will of flood-risk advisor Will Davidson LLP.
Read more: Lumber prices latest – impact of BC floods
The study also found that while flooding did not essentially change homeowners’ ability to pay their mortgages, the lower appraised value due to flooding affects mortgage providers’ lending limits.
“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,” said Steve Mennill, chief climate officer at the Canada Mortgage and Housing Corporation.
