USING A REPEAT SALES MODEL TO DETERMINE IF THE 2015 FLOOD EVENT CAUSED A LOSS IN PROPERTY VALUES IN CHARLESTON, SC

Wright, Julianna

USING A REPEAT SALES MODEL TO DETERMINE IF THE 2015 FLOOD EVENT CAUSED A LOSS IN PROPERTY VALUES IN CHARLESTON, SC

Authors

Wright, Julianna

Abstract

Charleston, South Carolina is a coastal community susceptible to extreme weather events, sea level rise, erosion and storm surge, which only worsens flooding. In 2015, Charleston saw $507.5 million worth of damage from the flooding of Hurricane Joaquin. This study determines the impact of the 2015 flood event on residential property values in downtown Charleston. Using Charleston County Property Record Data, I selected all qualifying residential properties within the surveyed area that had repeat sales within the 2010 to 2020 time frame. Using USGS flood data, I determined which properties flooded in 2015. I used a repeat sales model to determine if homes that flooded in 2015 depreciated (or even had a slower rate of appreciation), compared to the homes that did not flood in 2015. I show that for all straddling repeat sale properties and all straddling single-family residences, flooding in 2015 had a negative impact on the property values.