This article discusses why ocean-front property values will sink. Rising seas hit U.S. coastal property values: “A pricing signal from climate change.” This article is well worth reading before you invest in real estate near the ocean.
The trillion-dollar coastal property bubble is ready to burst as global warming-driven sea level rise and storm surges threaten more and more property with flooding.
We are now seeing “a pricing signal from climate change” in the relatively depressed prices for the coastal property most at risk for flooding, as Harvard real-estate professor Jesse Keenan told the Wall Street Journal Friday.
Keenan is the lead author of a new study of Miami single-family homes that found the “rates of price appreciation in the lowest elevation” homes “have not kept up with the rates of appreciation of higher elevation” homes since about 2000 (see chart). That is, the homes along Miami’s coast most at risk from climate change are seeing their value drop over time compared to homes less at risk of flooding.