The Impact of Climate Change on Coastal Real Estate Values

With the rise in sea levels and the intensification of storms, coastal real estate is facing unprecedented challenges. Whether it’s in Dana Point, California, Long Island, New York, or Nantucket, Massachusetts, some of the nation’s most expensive coastal properties are at risk due to climate change. Recent reports indicate that this year’s hurricane season is expected to have “above-normal” activity, with the potential for up to 13 hurricanes, four to seven of which could be major storms.

Economic Impact

The effects of climate change are already being felt on the coastal real estate market, with properties seeing a rapid decline in value. For example, a Nantucket home that was listed for over $2 million just last summer sold earlier this year for only $600,000. This significant loss in value was attributed to the erosion caused by sea level rise and intense rainfall. Real estate agents, such as Shelly Lockwood, are launching seminars to help their colleagues reprice homes that are at risk of being eroded by the changing climate.

Property Assessments and Tax Reduction

Attorneys like Chris Farley are working with homeowners in coastal areas to help reduce their property taxes as their homes and surrounding beaches erode. Farley highlighted a case where a property that was assessed at $2.2 million has not been reassessed, while neighboring properties have seen their values plummet. The erosion of cliffs and beaches, along with the loss of waterfront access, is leading to a significant decrease in property values.

The rapid changes in the coastal environment are evident in areas like Nantucket, where homes are being buried by sand pushed by rising ocean levels. Homeowners like John Conforti are seeing their properties devalued due to the impact of climate change, with estimates suggesting that a home without new risks could be worth millions less. As more properties lose value and property taxes are reduced, the local economy could suffer, leading to potential tax increases for residents to compensate for the shortfall.

Communities in coastal areas are scrambling to find solutions to address the challenges posed by climate change. In Montauk, New York, experts are reassessing coastal resilience plans that were made nearly a decade ago after Superstorm Sandy, as they are now outdated. Residents in places like Nantucket are voting on measures to determine which parts of the island need the most assistance and who will bear the financial burden.

Overall, the impact of climate change on coastal real estate values is significant and requires urgent action to mitigate further losses and protect vulnerable communities from the escalating risks posed by rising sea levels and erosion.