Flooding risks and housing markets: a spatial hedonic analysis for La Plata City

Abstract

This study examines the impact of flood-hazards on residential land prices. The study use data from undeveloped parcels of land for sale during 2004 in La Plata, Argentina. A spatial hedonic model is developed to provide efficient estimates of the marginal effect of being located on a foodprone area on property prices. Results suggest significant property price discounting. The price of a parcel of land situated within a food-prone area is about 17.3 percent lower than an equivalent property outside those areas.