See this article titled: Homeowners in Flood Zones Opt to Rebuild, Not Move
A proposal to buy the damaged homes of New Yorkers who want to relocate after Hurricane Sandy is finding few takers, as most residents opt to rebuild, state officials said on Friday.
“It’s up to the homeowner, and the vast bulk of homeowners are deciding to stay right where they are and rebuild,” Gov. Andrew M. Cuomo said at a news conference in Albany.
The state has allocated an initial sum of $171 million to buy homes in low-lying areas, part of an ambitious effort by Mr. Cuomo to reshape coastal land in the face of more frequent extreme weather. The governor has repeatedly warned about the threat of climate change.
“We can never make up for the hardship that people went through,” he said, “but we can use this as a learning and an improving opportunity.”
About 10,000 homes in the state were substantially damaged or destroyed by Hurricane Sandy, according to Cuomo administration officials. They estimate that the owners of perhaps 10 percent to 15 percent of them will pursue buyouts; that is the same share they projected when Mr. Cuomo was developing the plan in February.
“The only place where more than just a small handful want to relocate is a couple of communities on Staten Island,” Senator Charles E. Schumer, Democrat of New York, said at the same news conference. “Otherwise, just about everybody — you take Nassau, Suffolk, Queens — they all want to rebuild and come back, and I think that’s great. That shows the spirit of New York.”
NOTE: I asked Samantha Medlock of the Association of State Floodplain Managers what that organization thought about the buyout option and here is what she said ( April 29):
All mitigation options need to be available in the disaster recovery toolbox, from in situ elevation, floodproofing, and building codes, to buyouts, which are preferable wherever possible as the most permanent solution. Too often, structures are elevated or flood proofed only to face increasing risk as sea-levels rise or riverine flood heights increase. Buyout and relocation is the most effective long-term solution.
Recovery Diva 
It would be REALLY interesting to know the demographics of those who are taking the buyout. After the tornadoes in AL two years ago, many of the elderly did not rebuild. I suspect (but don’t know) that the same is true of Katrina (e.g., Ninth Ward).
I agree. That has been the trend in past disasters, and was true in the old days of urban renewal in major cities.
See – we don’t always disagree!