A recent report by the New Zealand Institute of Economic Research (NZIER) has revealed that one in four mortgaged homes in Auckland are vulnerable to 1-in-100 year floods. This means that if a flood of this magnitude were to occur, it would have a 1% chance of happening in any given year. The report has raised concerns about the potential impact of climate change on the housing market in Auckland.
The report analyzed data from the Reserve Bank of New Zealand and the Ministry for the Environment, and found that approximately 92,000 homes in Auckland are at risk of flooding. This includes both properties located near rivers and those situated in low-lying areas that are susceptible to storm surges and rising sea levels.
The report also found that the value of these properties is estimated to be around $50 billion, which represents a significant proportion of Auckland’s housing market. The potential impact of flooding on these properties could lead to a decline in property values, increased insurance premiums, and even mortgage defaults.
The report highlights the need for greater investment in flood protection measures, such as building sea walls and improving drainage systems. It also calls for greater awareness among homeowners about the risks of flooding and the importance of taking steps to protect their properties.
The findings of the report are particularly relevant given the increasing frequency and severity of extreme weather events around the world. Climate change is expected to exacerbate these events, making it even more important for homeowners and policymakers to take action to mitigate the risks.
In response to the report, Auckland Council has stated that it is committed to addressing the issue of flood risk in the city. The council has already invested in a number of flood protection measures, including building sea walls and improving drainage systems. It has also developed a Flood Risk Management Plan, which outlines strategies for managing flood risk across the city.
Overall, the report highlights the need for greater awareness and action on the issue of flood risk in Auckland. With one in four mortgaged homes vulnerable to 1-in-100 year floods, it is clear that more needs to be done to protect the city’s housing market from the potential impacts of climate change. By investing in flood protection measures and raising awareness among homeowners, Auckland can take steps to mitigate the risks and ensure the long-term sustainability of its housing market.
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