Search

The environmental benefits of having retention/detention ponds as major stormwater management facilities in a neighborhood have been well documented since the adoption of green infrastructure strategies in early 1990s. However, the capitalization effect of stormwater treatment ponds in real estate values still remains unclear. This study developed classic hedonic pricing and spatial econometric models to examine the capitalization effects of neighborhood-level detention and retention ponds using both cross-sectional and longitudinal housing prices. The housing market value from 2007 to 2016 was assessed in four subdivisions in Houston, Texas. A subdivision, located in the upper neighborhood, had retention ponds which were converted from detention ponds in 2011, while three subdivisions in the lower neighborhood had detention ponds over the same study period. The study results show that living near retention ponds has positive capitalization impacts on single-family housing prices, not only cross-sectionally but also longitudinally. In contrast, maintaining detention ponds depreciates housing values, and living nearby lowers the price increase over a decade. The findings in this study imply the importance of converting stormwater facilities into a park-like amenity to enhance aesthetic value and generate long-term economic benefits to a neighborhood. [ABSTRACT FROM AUTHOR]

The impacts of flooding can be devastating. Huge financial burden often follows major storm events to recover from structural damage. Well-designed drainage systems allow for effective discharge of stormwater, reducing property losses and expenditures on recovery. However, a lack of empirical studies on the topic has impeded the determination of which drainage method might be the most effective in preventing or minimizing property losses from flooding. This study assessed the economic impacts of three drainage systems − storage-, conveyance-, and infiltration-based facilities – on reducing flood damage recorded from 2009 to 2012 by Federal Emergency Management Agency in the Buffalo Bayou watershed in Houston, Texas, USA. Ordinary least squares and spatial autoregressive models were developed with a group of variables featuring drainage system, housing structure, geophysical environment, and storm characteristics. The results show that storage-based systems outperform conveyance-based mechanisms. Infiltration-based facilities are found to be less effective in reducing property damage because green spaces disconnected from sewer systems are rapidly inundated after being saturated while excessive overflow is not properly drained. This study confirms that the performance of a drainage system varies by facility type and environmental setting. The results encourage the recovery of wetlands and integration of retention/detention basins into community development in flood-prone areas to prevent potential future economic losses. • Storage-based drainage mechanisms are most effective for flood mitigation. • 92% of flood damage cost can be saved by using storage-based facilities. • Installing conveyance-based systems on property roads reduces flood damage by 19%. • Directing runoff to green spaces causes undesirable effects on property losses. [ABSTRACT FROM AUTHOR]