Beach Home Real Estate In A Time Of Climate Change
Climate change and the coming coastal real estate crash; It could rival the bursting dot-com and real estate bubbles of 2000 and 2008
Patrick Sisson, October 16, 2018 (Curbed)
“…[Techniques used to build the home in Florida that survived Hurricane Michael] such as raising it on stilts and using additional concrete supports…[roughly doubles the cost per square foot…Like many of the impacts of a warming planet, the serious economic reverberations and permanent damage caused by declining coastal property values are simply not being addressed in an urgent enough manner…[A 2016 investigation found] the impact of a coastal property collapse brought on by climate change…could surpass that of the bursting dot-com and real estate bubbles of 2000 and 2008…The warnings have only become more dire…In many ways, real estate will be the canary in the coal mine of climate change…For many coastal communities in the United States threatened by hurricanes, a period of rapid change has already arrived…
At the very least, we need a serious dialogue at the national level after repeated billion-dollar recovery efforts continue to tax the government as well as the insurance industry…[A detailed Union of Concerned Scientists analysis found] that most coastal real estate does not factor these risks into current value projections…[and] the value of waterlogged land won’t simply bounce back. Everyone from institutional investors to private homeowners will face losses that will drag down the wider economy…300,000 residential and commercial properties will likely face chronic and disruptive flooding by 2045, threatening $135 billion in property damage and forcing 280,000 Americans to adapt or relocate…[Florida] will be the state most at risk…Roughly 64,000 homes—including 12,000 in Miami Beach, a nexus of real estate investment—will face chronic flooding…[It will likely be a slow-motion disaster resulting in] a broken flood insurance system… click here for more
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