Homes sell for 8.2 per cent less after catastrophic floods

New report provides recommendations on how Canadians can limit flood risk By Flooding has pushed down housing prices in communities across Canada. New findings show that over the past eight years, catastrophic flooding in communities resulted in an average 8.2 per cent reduction in the final sale price of houses, 44.3 per cent reduction in the number of houses listed for sale, and 19.8 per cent more days on the market to sell a house. These findings are presented in a new  report  from the Intact Centre on Climate Adaptation, University of Waterloo. The study focuses on five Canadian cities, each of which had experienced catastrophic flooding between 2009 and 2020: Grand Forks, B.C. Burlington, Ontario; Toronto; Ottawa; and Gatineau, Que. The impact of flooding was measured for periods of six months before and after flood events. Attribution of flood impacts was determined by comparing changes in nearby non-flooded control communities over identical time frames. "The findings of this report do not surprise me," said Gary Will of Will Davidson LLP, a firm that advises on flood risk.  "They 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, homeowners to government decision-makers." The study also examined the impact of community-level flooding on mortgage arrears and deferrals in two Canadian cities for six months pre and post flooding.