As the effects of climate change become more apparent, the value of beachfront luxury homes is declining, impacting the real estate market. Coastal areas across the United States, from Dana Point, California, to Nantucket, Massachusetts, are experiencing increased flooding and erosion due to rising sea levels and intensifying storms.
This year’s hurricane season is predicted to be above normal, with the National Oceanic and Atmospheric Administration (NOAA) forecasting up to 13 hurricanes, including several major storms. The risk models for falling real estate values due to climate change are varied, but the market is already feeling the impact at a faster rate than anticipated.
In Nantucket, a home that was listed for over $2 million last summer sold for just $600,000 this year after 70 feet of beach eroded due to sea level rise and intense rainfall. Real estate agents like Shelly Lockwood are taking action to educate fellow agents on how to reprice homes at risk and communicate the potential risks to clients.
In Montauk, New York, multimillion-dollar homes are facing erosion and flooding at an unprecedented rate, with some homeowners unsure of what to do with their properties. ZIP codes along the East and Gulf coasts with a median home value of at least $1 million are at significant flood risk, totaling around 77,005 properties and potential losses of $100 billion.
Attorney Chris Farley is working with Nantucket homeowners to reduce property taxes as their home values decline. Some properties have been reassessed due to erosion, while others remain unchanged, causing disparities in tax burdens among homeowners. Protective measures like “geotubes” installed to prevent erosion are being exposed due to the rapid rate of coastal degradation.
On Nantucket beaches, sand is burying homes up to their windows, leading to condemnations of properties once utilities are exposed. Homeowners like John Conforti, who has lived in his home for 42 years, are facing significant losses in property value due to the effects of climate change.
As more homes lose value and property taxes are reduced, the local economy could suffer, potentially leading to tax increases for all residents. Communities like Nantucket and Montauk are reassessing coastal resilience plans to address the outdated strategies in the face of climate change.
The impacts of climate change on beachfront luxury homes are becoming more pronounced, highlighting the need for proactive measures to protect coastal properties and mitigate financial losses in the real estate market.