If you want to have a seaside property, you want it to be as close as possible to the water, right? Only problem is, unless you build on top of a cliff, you are vulnerable to rising sea levels. Not just "nuisance flooding" but storm surges and erosion. And this is starting to affect property values.
From ThinkProgress:
Home buyers are starting to incorporate climate risk into the price of property in areas facing warming-driven extreme weather disasters, new research finds. And that’s bad news for the trillion-dollar coastal property bubble.
“Homes in areas most exposed to flood and hurricane risk were worth less last year, on average, than a decade earlier,” according to analysis released Monday by Bloomberg News. Also, the price of homes at lowest risk for wildfires “far outpaced those with the greatest risk.”
The analysis by property data firm Attom Data Solutions, looked at home prices in some 3,400 U.S. cities. The firm examined five risk groups ranging from “very low” to “very high” for various extreme climate events.
Their analysis of home prices versus flood risk reveals that from 2007 to 2017, homes at “high” or “very high” risk of extreme flooding saw a 4.8 to 5.6 percent drop in price, while homes at the lowest risk saw an 8.4 to 9.6 percent rise.
[Read more here]
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