Coastal real estate in the United States is facing increased threats from climate change, as rising sea levels and intensifying storms are leading to flooding and erosion along some of the nation’s most expensive coastal properties. This year’s hurricane season is predicted to be above-normal, with up to 13 hurricanes expected, further exacerbating the risks faced by coastal communities. The effects of climate change are already impacting the real estate market at a faster pace than anticipated, with examples such as a Nantucket home selling for significantly less than its original listing price due to erosion caused by sea level rise and intense rainfall.
Real estate agents in at-risk coastal areas like Nantucket and Montauk are grappling with how to accurately price properties that are facing erosion and other climate-related risks. In Nantucket, real estate agent Shelly Lockwood launched a seminar to help agents reprice homes at risk of erosion, emphasizing the importance of communicating these risks to clients. In Montauk, storms this winter caused flooding and erosion, putting multimillion-dollar homes at risk of decreasing in value. The community is working to protect their beaches and properties from the increasing threats posed by climate change.
First Street, a climate risk data and analytics firm, has identified 77,005 properties at significant flood risk in just the ZIP codes on the East and Gulf coasts with a median home value of at least $1 million. The combined value of these properties is estimated to be roughly $100 billion, highlighting the potential financial losses faced by coastal real estate owners. Some homeowners are seeking property tax relief as their properties lose value due to erosion and rising seas, leading to reassessments and reductions in property taxes for some homes but not others.
The impacts of climate change on coastal real estate are becoming more apparent, with properties like those on Nantucket facing rapid erosion and loss of value. Sand has covered homes up to their windows, leading to condemnations by the town and reduced property values. Homeowner John Conforti, who has lived on the island for 42 years, has seen his property value plummet due to the risks posed by climate change. As more homes lose value and property taxes are reduced, the local economy could suffer, potentially resulting in tax increases for all residents.
Communities like Nantucket and Montauk are reassessing coastal resilience plans and considering how to address the impacts of climate change on their properties and economy. Nantucket residents are determining which parts of the island need the most help and how to finance these efforts, while experts in Montauk are updating coastal resilience plans made after Superstorm Sandy to account for the evolving risks posed by climate change. The challenges faced by coastal real estate highlight the urgent need for proactive measures to protect communities and properties from the impacts of climate change.
