Luxury Coastal Homes in the United States Face Challenges from Climate Change

Jun 24, 2024

by Internet

Luxury Real Estate
Luxury coastal homes in the United States
climate change impacts
storm risk
housing market

Abstract : Luxury coastal homes in the United States are increasingly vulnerable due to the impacts of climate change and rising sea levels. From Dana Point, California, to Long Island, New York, and Nantucket Island, Massachusetts, these once highly valued properties are now facing dual threats from hurricanes and coastal erosion.

According to reports from the New York Post on June 18 and analysis by CNBC, many luxury homes along the U.S. coast are confronting significant risks from rising sea levels and intense storms.

This year's hurricane season has already begun, with the National Oceanic and Atmospheric Administration (NOAA) predicting as many as 13 hurricanes, including 7 major storms. These forecasts exacerbate the risks facing coastal properties. Climate change models suggest that the decline in coastal property values could outpace previous expectations.

For instance, on Nantucket Island, a property valued at $2 million last summer sold earlier this year for only $600,000. A moderate nor'easter storm destroyed 70 feet of beach, leaving the house teetering on the edge of a cliff.

However, the new homeowner is not concerned, telling the Boston Globe that the reduced purchase price mitigated the risk.

Internet

In Montauk at the eastern end of Long Island, residents are working diligently to protect homes worth millions of dollars from storm surges.

Kay Tyler, executive director of the local Concerned Citizens organization, notes that in the past, floodwaters would quickly recede, but now the situation is different. She mentioned a friend who owns a $10 million house and is unsure how to handle it.

Along the East Coast and the Gulf of Mexico, there are 33 ZIP codes where the median home value exceeds $1 million. However, according to climate risk data from First Street, 77,005 properties face serious flood risks, with potential losses amounting to as much as $100 billion.

Lawyer Chris Farley is helping Nantucket Island homeowners reduce property taxes. He specifically mentioned a cliffside property valued at $2.2 million but now "worth next to nothing," with surrounding homes valued at $500,000 and $250,000.

On another Nantucket beach, a property's windows are buried in sand, while its septic system and wires are exposed. Real estate agent Shelly Lockwood said the property was originally worth $2.5 million but may now only be worth $500,000.

These situations underscore the increasing vulnerability of U.S. coastal properties to rising sea levels and increasingly severe weather events caused by climate change. As homeowners and local communities confront these challenges, the economic impacts on coastal real estate markets and disaster mitigation efforts will continue to shape their future.