AND SUSTAINABILITY DESIGN
The risk of disaster, especially flooding, is simply not being factored into the true cost of homeownership. University of Pennsylvania Wharton Real Estate Professor Benjamin Keys has been studying this for more than a decade.
He has concluded in a time of
decreasing affordability, the cost of insuring against a catastrophic event can
put one more squeeze on homebuyers.
Keys is updating a paper he authored
that looks at flood-prone coastal properties and whether sales will slow
because of staggering insurance hikes.
“A number of studies suggest that
these risks are not the first thing that homebuyers consider.
There are a lot of reasons why homeowners are not aware of the risk or do not appreciate the risk.
In some
states, sellers are not required to state prior flood damage or the flood risk
to a property,” he said.
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