ABSTRACT: Local homebuyers in the Groningen earthquake regionIr. Hieke T. van der KloetHanze University of Applied Sciences GroningenResearch Centre for Built Environment NoorderRuimteh.t.van.der.kloet@pl.hanze.nl0031-50-595-2015The earthquakes after the natural gas extraction in the Groningen region of the Netherlands have a significant impact on the housing market and sustainability of the communities in this region. Since the strongest earthquake around the community of Huizinge in August 2012, with an magnitude of 3.6 on the Richter scale, it became clear there is a relation between natural gas extraction and earthquakes due to soil subsidence. As a consequence houses in the region get damaged and after research it gets obvious housing prices decline and the region will become unattractive to potential buyers of houses, damaged or not. Therefore the Dutch Petroleum Company (NAM) since April 29th 2014 offers a compensation for the loss of the housing price before and after the earthquake of Huizinge to property owners who want to sell their home. They only get the compensation after a sales deal and only if they agree with the proposed compensation. Since the compensation for the decrease in house prices has been introduced, the number of participants of the regulation is lacking behind the actual sales of houses. Our study aims to contribute to the research on the consequences of earthquakes by natural gas mining on the real estate market in the northern part of the Netherlands, especially the Groningen region. First of all we want to declare why relatively a large part of the property owners (about 60% until 2015) don’t request for the compensation regulation. Our second question concerns the buyers of the (damaged) houses in the earthquake area. Why would they buy a home in a region full of risks? Who are these buyers? We use a mixed-method approach for data collection which leads to an analysis of a unique dataset on notarial deeds of house sales in nine municipalities in the Groningen earthquake region according to The Land Registry of the Netherlands during the period 2013 until the end of 2015 as well as discovering common patterns of interview results with residents and experts. First results show that the majority of the homebuyers originate from the local earthquake area in the Province of Groningen. Reasons why property sellers after the house sale don’t opt for the compensation regulation concerns the complexity of the regulation, the used valuation model and the expected long control time afterwards.From the first results we conclude that the Groningen earthquake region still has its attractiveness for local residents and buyers. Otherwise the regulation for compensation doesn’t reach enough property sellers in the nine municipalities of the Groningen earthquake region. Advise to the Dutch government should be to generously compensate the residents of the Groningen earthquake regions for the loss of value of their dwellings, damaged or not. This will help to improve the regional development and attractiveness of areas that are effected by earthquakes.
Few studies on residential mobility of ageing adults to rural areas have investigated which of them buy a home in a rural risk area. This paper examines which socio-demographic characteristics, housing attributes and earthquake circumstances influence the actual choice of mid-to-later life adults to purchase a house in a rural risk area. The study focuses on housing transactions in the Dutch Groningen rural earthquake region, compared to transactions in the Groningen rural non-earthquake area from 2012 to 2019 (N = 6,082). Buying a house in the Groningen risk area might be challenging, as the earthquakes have had a significant impact on the regional housing market, the building structure of the houses and the wellbeing of the residents. Earlier research nonetheless suggests that, despite the risks, homebuyers still purchase houses in the Groningen earthquake area. The developed model predicts which mid-to-later life homebuyers of 50 years and older will purchase a dwelling in the Groningen earthquake region. Logistic regression analyses show that characteristics of the mid-to-later life homebuyer and earthquake circumstances are decisive aspects in respect of this choice. Being a single mid-to-later life homebuyer, with a previous residence in the Groningen earthquake region or being born in this region, enlarges the probability of purchasing a home in the earthquake region. Another significant predictor of a home purchase in the earthquake region appears to be a higher earthquake intensity of the homebuyer’s previous residence. These conclusions indicate the existence of a local housing market in rural risk areas.
