NY Fed Warns of Significant Flood Risk for Properties in Its District, According to Reuters

By Michael S. Derby

NEW YORK – A recent report from the Federal Reserve Bank of New York highlights that homes in the New York, New Jersey, and Connecticut areas are at significant risk of flooding, placing them among the highest-risk locations in the nation.

According to the report, approximately 10% of properties in this region are classified as being at serious risk of flooding, positioning them within the top 25% of the riskiest areas across the United States, including more traditionally vulnerable regions such as the southeast.

Importantly, the report emphasizes that flood risk is not limited to coastal areas. It states, "Flood risk is not just found in coastal communities or in New York City." Inland cities such as Buffalo, Syracuse, and Newark also face considerable threats from heavy rainfall, flash flooding, and overflowing rivers. The study notes that this risk has intensified in recent years and is anticipated to grow even more.

The New York Fed’s report is part of its Community Development initiatives, which focus on health, financial resilience, and climate risk management.

The report indicates that around one million properties that are vulnerable to flooding are home to approximately 1.6 million households, totaling around four million individuals. Notably, over 400,000 of these properties are located in low- to middle-income neighborhoods.

The areas exhibiting the highest risk include Long Beach in New York and Keansburg in New Jersey, where an astonishing 90% of properties are susceptible to flooding.

The findings reveal that flood risk fluctuates throughout the tri-state area, meaning no singular solution can address all issues. As noted by researchers at the Fed, "All of these types of flooding require some degree of unique and targeted responses, in addition to general measures that are common to all types of flood mitigation."

Concerns over flooding risks related to climate change have surged, spurred by increasing disasters globally. Recent catastrophic flooding in North Carolina, for instance, has already led to multiple fatalities and significant property damage.