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Yes. Having a building in a designated flood zone greatly increases the cost of building and the insurance, if you can even get flood insurance.
There is an interesting investigative piece on NPR today about how FEMA is not providing accurate flood risk predictions for a variety of reasons. This also occurred in North Carolina with Hurricane Helene's flooding last year. The FEMA maps were very inaccurate, which meant that many occupied buildings such as residences avoided stricter building and site preparation expenses, as well as lowered the need for insurance. There are several private agencies that provide flood zone and flood risk information that were far more accurate than the FEMA maps. They clearly designate the flooded cottages in in Camp Mystic and other areas as being within a flood plane.
The issue is really $$$$, not safety.
It costs money to build a heavier foundation or put your home on piers, to build higher up a slope, to purchase flood insurance if you are in a designated flood area, and all kinds of people have financial incentives in avoiding this - developers, realtors, municipalities and civil planners, and, of course. owners or managers of such properties.