The Federal Reserve Bank of New York has released a report titled “Flood Risk and the Tristate Housing Market,” revealing that nearly one million houses and multifamily buildings in New York, New Jersey, and Connecticut are at high risk of flooding. This equates to one in ten properties in the tristate area, placing them among the top 25% of riskiest properties nationally, comparable to homes in coastal Florida, Texas, and Louisiana.
The report indicates that almost 40% of these at-risk properties—over 400,000—are located in low- to moderate-income census tracts. These properties house more than 1.5 million people and include single-family homes as well as multifamily buildings such as rental apartments, condominiums, and co-ops.
Low- and moderate-income households often face significant challenges following a flood due to both direct costs like property damage and indirect costs such as decreased property values and increased insurance premiums.
The report provides further insights:
– The high-risk properties in the tristate area are home to over four million people: more than 2.5 million in New York State, nearly 1.2 million in New Jersey, and almost 350,000 in Connecticut.
– Some communities have an extremely high percentage of properties at risk; for instance, over 90% of properties in Long Beach, N.Y., and Keansburg, N.J., are vulnerable to flooding.
“The threat of floods in the tristate area isn’t confined to the coasts,” said Jake Scott, a community development analyst at the New York Fed and an author of the report. “Extreme rainfall, flash floods, and overflowing rivers threaten homes and businesses in inland cities including Buffalo, Syracuse, and Newark.”
The report includes case studies on community planning and action against flood risks for four communities: Keansburg and Hoboken in New Jersey; Syracuse; and Brooklyn in New York. It builds on previous research by the New York Fed on flood risk impacts on household finances and basement apartments in New York City. This research is part of the New York Fed’s Community Development efforts focusing on health, household financial well-being, and climate risk.
Contact:
Ellen Simon
(347) 978-3036
Ellen.Simon@ny.frb.org
