The trillion-dollar coastal property bubble is ready to burst, per new study
Rising seas hit U.S. coastal property values: "A pricing signal from climate change."
A second, broader study, “Disaster on the Horizon: The Price Effect of Sea Level Rise,” found that “Homes exposed to sea level” are being priced 7 percent lower than homes that are the same distance from the beach, but that are less exposed to flooding.
The study, which used Zillow data from around the country, concluded that the pricing gap between riskier homes and safer homes was being driven by the “more sophisticated investors.” For that group, the gap is about “11 percent and has increased over time, coinciding with the release of new scientific evidence on the extent and timing of ocean encroachment.”
The trillion-dollar coastal property bubble is ready to burst
The economic risks from rising seas are enormous — but the Trump administration’s policies all but guarantee a worst-case scenario plays out.
A 2014 Reuters analysis of this “slow-motion disaster” calculated there’s almost $1.25 trillion in coastal property whose value is being propped up by the National Flood Insurance Program’s below-market rates.
“The risk will rise as sea levels rise, and when that happens, you’d expect your property value to fall,” as Lloyd Dixon, the director of the RAND Center for Catastrophic Risk Management and Compensation, explained in October. “At some point, the property becomes worthless.” ...
https://thinkprogress.org/rising-seas-h ... bf4e7443b/
(And before all the Trumpistas jump in with rage, let me say that, yes, the problem existed long before Trump, but he has not made things better yet on his watch, and there is good argument that he is making it much worse. )
Was it Ibon who had coastal property in Florida. Whoever it was, have you unloaded it yet? I'd be interested in what intelligent people in these difficult situations see as their options and priorities at this point.