Understanding Home Buyer Preferences for Flood Risk and Mitigation in a Flood-Prone Region

Le résumé fourni par la source

Homebuyers in flood-prone areas must navigate increasingly complex risk information and mitigation options. Yet, little is known about how prospective buyers evaluate flood risk and mitigation features during the home purchase process, or how their preferences vary depending on how risk is communicated. This study uses a discrete choice experiment to quantify how prospective homebuyers in the U.S. Gulf Coast value flood risk, mitigation measures, and various forms of risk communication. We surveyed 1,040 respondents who intend to purchase homes within five years in coastal counties across five Gulf states. Results show that homebuyers are willing to pay substantial premiums for homes with lower flood risk and effective mitigation (e.g., elevation or flood-resistant materials). Preferences are sensitive to how flood risk is presented: monetary formats yield more consistent valuations than probabilistic ones. These findings highlight opportunities for improving risk communication and flood policy. By focusing on a region at the forefront of climate-related flood risk, this research contributes to understanding how individuals make high-stakes decisions under uncertainty and offers insights for improving climate resilience in housing markets.

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