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Rising Seas

In a recently published report, economists at Zillow showed that coastal property values are not declining with sea levels. The study was conducted before Hurricanes Harvey and Irma, however. Did they change the results? One would hope so since it seems more than unscientific to analyze data before the most expensive storms in U.S. history (Harvey alone caused more than $200 billion in damages).

Nevertheless, the study found that, while many coastal properties have been affected by erosion and flooding, property values overall continue to rise. The researchers analyzed data from 1985 to the present day, looking at homes within half a mile of the coast in 27 states. They compared home values near the coast with that farther inland and found that, on average, coastal homes are worth about $225,000 more than inland homes.

It’s not surprising that this is the case; people are drawn to coastal areas like the oceanfront homes in Myrtle Beach for their natural beauty and amenities. And as sea levels continue to rise (albeit slowly), it’s important to remember that this affects only a small portion of the coastline. In fact, in most cases, the value of the coastal property should rise because of their close proximity to the water.

Homes in Miami Beach are expected to continue rising in value because they’re situated on some of the most valuable real estates in Florida.

For example, homes in Miami Beach are expected to continue rising in value because they’re situated on some of the most valuable real estates in Florida. Last year, billionaire David Tepper bought a penthouse for $43 million at the One Paraiso luxury condo building that is just feet from Biscayne Bay. This month he sold it back at a significant profit. But this is not an isolated incident; coastal properties are already seeing price increases due to climate change-related factors.

Another notable study looking at home values during hurricane events was conducted after Hurricane Katrina devastated New Orleans and other communities along the Gulf Coast. The Federal Management Agency (FEMA) study found that, while some property values declined in the short term, they had all recovered by 2007. This is likely due to the fact that many people view hurricanes as a buying opportunity; when a home is available at a discount, people are more likely to invest in it.

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So what does this mean for coastal homeowners and real estate investors? While climate change may cause some short-term disruptions in the market, in the long run, coastal properties will continue to be in high demand. And as sea levels continue to rise, those properties that are most vulnerable to flooding and erosion will become even more valuable. So if you’re thinking of selling or investing in coastal property, don’t let the threat of climate change scare you away.

After all, the NOAA has determined that the U.S. has seen a nearly fourfold increase in billion-dollar disasters since 1980. And while coastal properties are certainly at the greatest risk, the data show that homes near rivers and other inland water features may also be vulnerable to flooding and loss of value (FEMA’s study found significant declines in home values along rivers). But this doesn’t mean we should stop investing; it just means we need to find ways to mitigate these risks and continue providing well-designed homes that people want to call their own. The best way for an industry professional to learn about mitigating climate change is by attending The AIA Conference on Architecture 2017 & ASHRAE/IES Conference on High-Performance Buildings.

So, are rising seas causing coastal property values to decline? The answer is a resounding no. In fact, in many cases, the value of the coastal property is increasing as people are drawn to the natural beauty and amenities that these areas offer. And as sea levels continue to rise, those properties that are most vulnerable to flooding and erosion will become even more valuable. So if you’re thinking of selling or investing in coastal property, don’t let the threat of climate change scare you away – it may just be the smart thing to do.

About Climate Change and Sea Rising

Climate change is causing sea levels to rise, but in most cases, this actually increases the value of the coastal property. For example, homes in Miami Beach are expected to continue rising in value because they’re situated on some of the most valuable real estates in Florida. This is likely due to the fact that many people view hurricanes as a buying opportunity; when a home is available at a discount, people are more likely to invest in it.

Climate issues have been in the headlines a lot lately, and for good reason. The world’s leading scientists agree that climate change is real, it’s happening now, and it’s caused by human activity. This means that we need to take steps to reduce our emissions and prevent the most devastating effects of climate change from taking place.

In short, it means that we need to be more aware of the risks associated with climate change and take steps to mitigate those risks. For example, if you’re thinking of investing in coastal property, you should be aware of the fact that sea levels are rising and that this may cause flooding and erosion in the future.

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The good news is that, according to a recent study by FEMA, property values have actually increased in most cases since 2000. The study found that, while some property values declined in the short term, they had all recovered by 2007. This is likely due to the fact that many people view hurricanes as a buying opportunity; when a home is available at a discount, people are more likely to invest in it.

Tiqua Jackson