Climate Change Making Luxury Beach Homes Lose Value

(AmericanProsperity.com) – Sea levels are rising and storms are getting worse as climate change continues to make changes to our environment. Coastal real estate is now beginning to lose its value due to the potential of flooding and erosion.

The National Oceanic and Atmospheric Administration has predicted that there will be “above normal” activity during this year’s hurricane season. It has predicted up to thirteen hurricanes with four to seven of them being classified as a “major storm.”

Risk models have shown that the real estate on the coast is continuing to fall because of the effects of climate change and these risks in the area. A home that was listed in Nantucket last summer was up for almost two million dollars, but this year it is up for only six hundred thousand dollars. That is mainly because rising sea levels have taken away about seventy feet of the beach the home sits on.

Shelly Lockwood, who sells real estate in Nantucket, spoke out saying that this isn’t the only home where the price is much less. “One sold in the mid-sevens and one sold in the mid-eights, which I know sounds like a lot of money, but those houses, if they weren’t at erosion risk, would have sold for, I don’t know, ten or twelve million dollars.”

“I think we owe it is a duty to our clients to tell them what the risks are, and I was getting frustrated that that wasn’t being communicated to my satisfaction, because I saw houses selling and I thought that’s not worth that, it’s falling in the ocean,” she continued.

Kay Tyler, director of Concerned Citizens of Montauk in New York, said that they have seen flooding that will normally subside but the water is not subsiding anymore.

The reassessment of homes in these areas where there is erosion has shown that some homes that haven’t been reassessed are still listed for millions, while those in the same area and neighborhood are now being reassessed to be five hundred thousand dollars.

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