A Texas law that notifies homebuyers of flood risk has significantly decreased property prices, according to a new federal study that comes as many states adopt or consider similar flood disclosure requirements.
The Texas law, enacted in 2019 after Hurricane Harvey caused $155 billion in property damage, is hailed as a national model for addressing the growing damage from flooding and climate change.
New Fannie Mae research shows the effect — for better or worse — that flood disclosure can have on sale prices. A study released Wednesday found that prices dropped by roughly $15,000 on average for homes most affected by the Texas law.
study released Wednesday
That 4 percent decline could have major policy implications as officials try to steer people away from living or building in flood zones — often by making it costlier.
