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Floodplain regulations and residential land values in Oregon

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  • The impacts of floodplain regulations on residential land values in Oregon were investigated. It was hypothesized that the mean rates of appreciation for regulated lands would be significantly less than those for similar, proximate, unregulated lots. Six study areas in western Oregon were used to test the hypothesis. The hypothesis was rejected in most instances. When it was accepted, flood damage rather than floodplain regulations appeared to be the cause. the converse of the research hypothesis was not uncommon: the mean appreciation rates for the regulated parcels increased significantly more rapidly than those for the unregulated control parcels. It was concluded that this probably reflects the amenity values of waterfront properties and also the markedly improved water quality of the Willamette River over recent years. Thus, most of the evidence from the six study sites suggests that floodplain regulations have not had a significant damp­ening effect on residential land values in Oregon. Final conclusions would be premature at this juncture because the research could not be carried out under ideal circumstances: 1) con­siderable residential development antedated implementation of flood­plain regulations in some of the study areas, reducing the potential impact of the regulations; 2) in most of the study areas, floodplain regulations were in the emergency phase (less stringent regulations) during most or all of the study periods used; and 3) assessment pro­cedures varied from one county to the next, making it impossible to uniformly adjust for extraneous factors affecting land value appre­ciation rates.
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  • The work upon which this publication is based was supported in part by funds provided by the Office of Water Research and Technology (Project No. A-054 ORE), U.S. Department of the Interior, Washington, D.C., as authorized by the Water Research and Development Act of 1978.
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