Coastal real estate is facing unprecedented challenges as sea levels rise and storms intensify due to climate change. From California to New York to Massachusetts, some of the most expensive coastal properties in the nation are in precarious positions. The National Oceanic and Atmospheric Administration (NOAA) has predicted an “above-normal” hurricane season this year, with up to 13 hurricanes, including four to seven major storms. The impacts of climate change are already being felt in the market, with falling real estate values and increased risks for homeowners.
One example of the effects of climate change on coastal real estate is a Nantucket home that was listed for just over $2 million last summer but sold for only $600,000 earlier this year. The property experienced significant erosion due to sea level rise and intense rainfall, resulting in the loss of 70 feet of beachfront. This rapid depreciation in value is not an isolated case, with other properties on Nantucket selling below their market value due to erosion risks.
Risk Mitigation and Impact on Homeowners
Real estate agents like Shelly Lockwood are taking proactive measures to educate homeowners about the risks associated with coastal properties. Lockwood launched a seminar to help fellow agents reprice homes at risk and communicate the potential dangers to their clients. In Long Island, homeowners in Montauk are facing similar challenges, with storms causing flooding and erosion that threaten multimillion-dollar homes. Property values are declining, leaving homeowners uncertain about the future of their investments.
In areas along the East and Gulf coasts of the United States, where median home values exceed $1 million, over 77,000 properties are at significant flood risk, totaling roughly $100 billion in potential losses. Attorneys like Chris Farley are working with homeowners to navigate property tax reassessments and potential reductions in value. As more homes lose value and tax revenues decline, the local economy could suffer, leading to potential tax increases for all residents. Communities are reassessing their coastal resilience plans in response to the increasing threat of climate change.
The rapid erosion and loss of property value caused by climate change have long-term implications for coastal communities. Homeowners like John Conforti in Nantucket have seen their properties buried in sand and facing condemnation due to rising ocean levels. The inability to use waterfront properties as intended reduces their overall value and poses challenges for homeowners looking to sell. The economic impact of declining property values extends beyond individual homeowners, affecting the entire community and requiring new strategies for adaptation and resilience.
Overall, the impact of climate change on coastal real estate is a complex and multifaceted issue that requires proactive measures to address. From property value depreciation to tax revenue losses and community resilience planning, the challenges posed by rising sea levels and intensifying storms are significant. By raising awareness, implementing risk mitigation strategies, and adapting to changing conditions, coastal communities can better prepare for the uncertain future of climate change.