The Value of Building Codes

Abstract

This article examines Florida's Gulf Coast building code changes during the 1980s to determine how land market participants value building codes in high hazard areas, including those associated with the provision of federal flood insurance. The findings suggest either that market participants in high hazard areas want lower levels of building safety than government regulators, or that they do not fully understand the nature of hazard risk.

Keywords: Carolyn Dehring, Florida, Gulf Coast, building code, land market, federal flood insurance, high hazard areas, building safety, construction requirements, property values, housing codes, externality effect, CBZ

JEL Classification: H11, H89, L52, L51, L70, L74, L85