Year: 2025
Type: dissertation
Abstract: As climate change intensifies, coastal cities face increasing flooding risks that threaten housing markets and urban infrastructure. This thesis examines whether these risks are reflected in property prices in Malmö, Sweden – a city identified as highly vulnerable to future coastal flooding. Using a hedonic pricing model combining GIS data and detailed property sales data from 2024, we investigate how consumers respond to three distinct flooding scenarios: 100-year, 200-year, and extreme floods. Contrary to theoretical expectations, the results show that properties in flood-prone zones receive a price premium, particularly in the more frequent scenarios. This paper argues that this is due to an inability to account for climate risks, due to a combination of radical uncertainty surrounding climate change and behavioural biases. The findings contribute to a growing body of literature that investigates the ability of market prices to reflect climate-related risks and it underscores the urgency of policy responses that improve risk awareness and incorporate climate adaptation into urban planning and housing policy.
Author: Sandin, Thea
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7081709742