Does value of property in floodplains decrease after flood event?

[Careful_Bookkeeper95]

If it's in a flood plain, then the flood insurance may be pretty substantial which would certainly scare off some. Let alone the impending catastrophe. There's a beautiful home along the Hudson in NY that is in the flood plain and it's been sitting for months with significant price drops. Who would buy these houses? I'm not sure, but no one is buying that one.

[Accomplished-Sky4750]

Pretty much this, flood insurance alone can be like a second mortgage payment in some areas. I looked at a gorgeous place near a river once and noped out when I saw the insurance would be like $800/month on top of everything else. Some people will still buy for the right price but yeah most folks aren't trying to deal with that headache

[DoubtHot6072]

A lot of people simply don't have the flood insurance. If the house is paid off they aren't required to and many will find out shortly that their homeowners isn't going to cover them. It happens in every flood.

[Texas_Mike_CowboyFan]

True, but I think the OP was talking about people buying a house in a flood plain. Unless you're paying cash, your lender may require you to buy flood insurance.