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Friday, November 15, 2024

Luxury beachfront properties are depreciating quickly due to the impact of climate change

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The Impact of Climate Change on Coastal Real Estate: A Looming Crisis

As sea levels rise and storms intensify, coastal real estate is facing unprecedented challenges. From Dana Point, California, to Long Island, New York, and Nantucket, Massachusetts, some of the nation's most valuable coastal properties are at risk due to climate change.

This year's hurricane season is expected to be above-normal, with up to 13 hurricanes predicted by the National Oceanic and Atmospheric Administration. The impact of climate change on coastal real estate values is already becoming apparent. A Nantucket home that was listed for over $2 million sold for just $600,000 due to beach erosion caused by sea level rise and intense rainfall.

Real estate agents like Shelly Lockwood are working to reprice homes at risk and educate clients about the potential dangers. In areas like Montauk, New York, homeowners are scrambling to protect their multimillion-dollar properties from flooding and erosion.

According to risk models, there are 77,005 properties at significant flood risk on the East and Gulf coasts of the United States, with a combined value of roughly $100 billion. The erosion of beaches and property values is forcing homeowners to reassess their investments and consider their options.

Attorney Chris Farley is helping Nantucket homeowners reduce their property taxes as their homes lose value. With homes being reassessed due to erosion, some properties are seeing significant reductions in value, leading to concerns about the overall impact on the local economy.

The effects of climate change on coastal real estate are undeniable, and homeowners, real estate agents, and local officials must work together to address the challenges ahead. As storms become more frequent and sea levels continue to rise, the future of coastal real estate hangs in the balance.

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