Overview
- A typical three‑bed, two‑bath home in a flood zone sells for about $75,000–$75,500 less than a comparable property outside risk areas.
- Roughly one in six Australian homes—just over two million of about 11.7 million—fall within flood zones, with Queensland and New South Wales most affected and Tasmania and the ACT least impacted.
- Local losses are steep in hotspots, including a 10.6% drop (about $303,000) in Brisbane’s Chelmer and Graceville and an 8.7% drop (about $363,500) in western Sydney’s Pitt Town and McGraths Hill.
- Researchers found at‑risk properties recover from a lower base after disasters and then grow more slowly than flood‑free homes, widening the value gap over time.
- Insurance constraints and equity concerns are intensifying, with experts urging stronger planning rules and considering buybacks as repeated 2025 flood events sharpen risk perceptions.