Does Coastal Erosion Affect House Prices?
If you live on a beachfront property, you might be curious about the effects of coastal erosion on house prices. There is no seawall and beachfront properties have less than two decades left. Yet two homes on the beachfront sold last year for less than $500k. One of them was directly in the path a 50-year-old eroding beach. This is a sign that resilience is possible.
Coast erosion can cause property damage
A new report from CoreLogic has identified areas where homeowners are at risk from escalating storm surges and coastal erosion. CoreLogic uses a Coastal Risk Score to assess the potential impacts of climate change on a particular region. It considers slow erosion, changes to coastlines, and the threat of rising sea levels. This score allows homeowners to understand the potential impact of these issues on their property value and future planning.
Although many risk-reduction measures have been implemented to help reduce coastal shoreline erosion, some areas remain at risk. Even after these precautions are taken, some areas are constantly vulnerable to flooding and severe storms. Climate change will lead to stronger storms but the overall frequency may decrease. If you live in a flood area or along the coast, it is worth considering removing any structures which might be in the way. Coastal communities usually dedicate land to public open space or transfer it to a land trust.
Property loss costs
Property prices are at risk from coastal erosion. It is a natural phenomenon affecting coastal areas, but not all property values will reflect the resulting erosion. The price of oceanfront property, for example, will be significantly lower if it is eroded. The same applies to houses located close to the coast. But the costs of erosion on house prices may not be evident until decades from now. This study examines the costs of coastal erosion and its effects on house prices.
Coastal erosion is a major problem that impacts local and regional economies. In the U.S., coastal erosion costs around $500 million in property value annually. Additionally, it can affect tourism and local economies in the affected regions. The erosion will result in a decrease in visitors and a decrease in property prices. The homeowners in the country will feel the effects of coastal erosion. Fortunately, it is not too late to prevent erosion from affecting the price of your house.
Impact of adaptation measures
Adaptation measures to the increasing risks of sea level rise are becoming a critical part of coastal protection and management. These measures will require long-term planning and decision-making and will need to be designed based on an uncertainty-based approach. The study identifies the key variables and processes that need to be considered to achieve adaptation goals. This study will aid in the development of new adaptation strategies.
According to the study adaptation structures are associated significantly with a high property price premium. The premium is most likely based on the multiple kinds of amenities that accompany such structures, such as boating access and capacity to build a dock. Additionally, the property market appears to consider future SLR in home prices. This study is based upon a spatially explicit database of coastal features. It hypothesizes that local residents perceive SLR risks as being mitigated by adaptation structures.
Insurance scheme to protect properties from erosion
The 1988 Coastal Zone Management Act addresses future erosion losses. It protects property by limiting erosion and subsidence that can be caused by human activity. However, coastal erosion is a complex issue. While there are occasional variations in shoreline changes, the long-term trends are often hidden. This means that coastal erosion policy should consider both natural and human-induced factors.
There are many issues surrounding coastal erosion, including its impacts on the National Flood Insurance Program (NFIP), the economic viability of coastal communities, and the integrity of our environment. Coastal erosion also affects homes along the U.S. Atlantic, Gulf coasts. It is difficult to inform homeowners about erosion risks due to a lack in mapping. Insurance rates for properties that are vulnerable to erosion are not adjusted enough to account for this risk.