How Climate Change Could Impact Your Home Value

from US News

IN 2018, THE FEDERAL Emergency Management Agency announced that it would be updating New York City’s flood maps as a result of rising sea levels and shifting climate change forecasts. After all, in New York City, it’s been estimated that approximately 80 percent of the property owners who have experienced flood damage since the maps were last updated in 1983 didn’t have flood insurance.

If you live in an area that has been plagued by floods, fires or beach erosion, or if you are concerned because 2014 to 2018 were the warmest years on record, you may be asking yourself: “How will climate change impact my home’s value?”

Climate change could impact your home’s value in several ways, including:

    • Less demand for waterfront homes.
    • Higher insurance premiums.
    • Higher property taxes.
    • Increased property values for some homeowners.

While it’s impossible to predict the future, the consequences of rising temperatures and sea levels and increasing flood-prone areas could result in adjusted home values. Below are climate change projections and factors that will likely significantly alter property values, according to experts.

More here.

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10 Comments

  1. I knew global warming was a serious issue, but for some reason, I never thought of this reason. It totally makes sense that certain home values could decrease as a result of being too close to the water. Personally, I would not buy a house near the water because of all the hurricanes and flooding, but this just adds another reason to stay away. It also makes sense, for insurance companies, to increase premiums because these houses are at a higher risk than others. In some states, homes have depreciated in value by $403.1 million, according to Williams. Also, some states should expect to see flooding 240 times per year. I could not imagine spending almost every day of the year dealing with a flood. I live in Long Island and the only time my basement flooded was because my toilet overflowed when we were on vacation. Everything was ruined and it was a disaster. If I lived in those areas, I would move as far away as I could.
    The places that benefit the most are states that are more inland than others. It is a much safer bet than being close to the water as there is too much unpredictability these days. I do hope that we are able to help the people that have to deal with rising water conditions every day because it is not fair to have to live in fear that your house may be wiped out any day. Because of all the damages they have already suffered, paired with increased insurance premiums, and decreased home value, they all probably need assistance. Although these things are not unexpected, that does not make them fair.
    I have multiple family members that live very close to the water. When I take their boats or jet skis out, I have seen multiple houses that have built up the walls around their house. Every year it seems like those walls get taller and taller. Obviously, they are protecting their house from the rising water levels, but how much is too much. Eventually, those walls are going to block the view from their beautiful million-dollar home. At some point, we have to change these water levels or so many people are going to lose so much.

  2. Climate change has been a pressing issue for as long as I can remember. It is sad to say, but I am not all that surprised that the sea levels are rising as we have ultimately known this was coming for years. Immediately upon reading this article I was not surprised, but one thing that really stood out to me is the effect this could potentially have on property taxes. The fact that this could possibly raise property taxes in crazy to me. Living in New Jersey, especially the county where I live, property taxes are truly a ridiculous amount. That being said, it is unlikely I would be affected by this raise in property taxes as I do not live in an area that floods very often at all. Still, it is shocking to me they could go even higher due to climate change. I think one of the saddest parts of this all is that climate change has been such a prominent issue for so long, yet nothing is changing and us as humans continue to worsen the damage we have already done. I was not all that surprised that there will be less of a demand for waterfront homes, but I was surprised that in New Jersey that demand was expected to drop thirty-four percent. While most New Jersey residents seem to live and breathe the shore during the summer I have noticed, at least among people I know, individuals selling their homes that were waterfront or resided closely to the shore and resorting to renting in the summer instead. I found it interesting that some homeowners property values would actually significantly increase due to climate change and these rising sea levels. It is not all that surprising though that people would want to migrate inland. It reminded me of how after the pandemic began those who resided in large cities began to migrate out and into more suburban and less densely populated areas. Overall, this article was saddening to see the effects climate change is having on so many aspects of life, but is a natural consequence we have known was coming for years.

  3. The climate change issue regarding home value is something my family has been talking about since Superstorm Sandy eight years ago. I live in a community surrounded by water and most of my neighbors were flooded and I have seen homes that were half in the bay and half still (barely) standing. It is interesting because the rebuilding of some homes in my area have just finished within the past year. Because of my experience witnessing things like the Red Cross going around my neighborhood, I have no interest in ever living on the coast. The article mentions that waterfront markets still remain strong which does not make sense to me. To my understanding, this just means that some people are either not doing their research or just do not care unless it happens to them, which is unfortunate. My family does not plan to stay on Long Island once my parents retire and because of the storm, we already know we are not going to get as much for our house as we originally believed. However, according to the previous statement maybe homeowners will still want it just because it is so close to the water.

    I understand the fact that property taxes can increase if there is an increase in flooding, however, it is not the people’s fault that their community routinely floods. The alternative to this is people not living in those areas, which I think we are going to see a lot of in the future. However, if no one lives in those areas, there would probably not be many places to live in the U.S. For example, the article mentions that there is an increase of algae in Ohio which I have never heard of. There are probably so many cities and townships that all have their own issues, therefore, that is the reason why the only solution is increased taxes. On the other hand, no one is going to want to pay inflated prices for a property that continuously gets destroyed.

  4. While everyone knows about climate change and its detrimental effects that it has on the earth, this article caught my attention because of its effects on the housing market. The first point that the article brings up is the effect on waterfront homes, which seems like common sense. Climate change causes less of a demand for waterfront homes because of the concern of flooding. That, and also the fact that because of the high risk of hurricanes and flooding, flood insurance rates become more expensive. Basically saying, if you live in coastal areas then you are going to be severely affected by either the horrible weather, higher insurance rates, or higher taxes. Higher taxes become an issue because of the people moving away from these coastal areas. Since there would be fewer people to tax, the tax rates will increase. While climate change is inevitable, there are steps that can be taken to lessen the damages that come along with it. Political leaders are the key to stepping up to create remedies for climate change and help lessen its damages to the communities.

  5. Climate change is something I am not too well informed on so when I saw this blog it instantly caught my attention. Climate change has impacted New York City and has forced them to change their flood map. The reason they had to change it is because sea levels are rising which can lead to more floods. According to the article, “approximately 80 percent of the property owners who have experienced flood damage since the maps were last updated in 1983 didn’t have flood insurance.” That is a crazy high number and must have cost families lots of money. My family was greatly impacted by hurricane Sandy and if we did not have flood insurance, I do not know what we would have done because everything we needed was expensive. The first way climate change can impact your home’s value is it can lessen the demand for waterfront houses. According to University of North Carolina Wilmington, “oceanfront property values could drop across beachfront property in the United States if federal subsidies were eliminated.” My home state, New Jersey, would see a 34 percent decrease in home value. A study done by Columbia University looked at waterfront properties in Maine, Massachusetts, Rhode Island, and New Hampshire and found that “sea levels rising have caused homes to depreciate in value by $403.1 million.” After reading that homeowners who live on the waterfront have a reason to be nervous. Another way climate change can impact your home value is higher insurance premiums. A manager and principle broker agent of Marindependent Insurance Services LLC in Mill Valley, California said that “many of his clients were in zones that FEMA considered safe from flooding that are now in zones that FEMA considers risky, which caused a sharp spike in insurance rates.” Residents in these areas are not happy to see their insurance premiums rise but feel like the problem is our country not doing enough to stop climate change. Another way climate has impacted home values is high property taxes. According to 2014 study by the Union of Concerned Scientists by 2045, “cities like Atlantic City and Cape May, New Jersey, can expect to see tidal flooding 240 times or more per year.” With this info residents will move out of these areas leaving less people in the towns. With fewer residents there will be a smaller tax base which will lead to property taxes rising. Overall, it is really crazy and scary to think how big of an impact the climate can have on the housing market and it will be an interesting topic to follow going forward.

  6. Climate change has become one of the most contested subjects in the political sphere in the modern era. Whether it is believed or not, there are many scientific changes happening to the world. The sea levels are rising due to the polar ice caps melting which will wreck havoc on coastal cities within the next century if we aren’t careful. Certain cities like Miami and Venice are already having major issues with flooding and water runoff which is limiting real estate expansion. Certain countries are dealing with this issue better than others; for example, the Netherlands are currently installing flood gates within their northern coast line to protect their largest city, Amsterdam. Coastal cities on the eastern seaboard of the United States such as New York, specifically Manhattan will have massive flooding which will most likely drown the city. During 2012, Hurricane Sandy brought so much flooding that certain parts of the city had a couple inches of water on the mainland. Real estate in coastal cities is generally more expensive as throughout the course of human history, living by the water posed an advantage for its inhabitants. As a result, trillions of dollars worth of property may one day not exist due to cities legitimately going under water. This is an issue which should be aided now as it can be stopped if we control our environment.

  7. Rising sea levels and shifts in climate change forecasts has caused the Federal Emergency Management Agency to update flood maps for New York City. Approximately 80 percent of property owners have experienced some type of flood damage yet did not have any flood insurance. Climate change impacts home values by making waterfront homes in less demand due to the increased risk of flooding and beach erosion. Oceanfront property values could drop if federal subsidies were eliminated. Federal subsidies assisted the rebuilding along the coasts that were increasingly vulnerable to flooding because it was considered essential to the economies in these communities. Ne study found that “increased tidal flooding caused by sea levels rising have resulted in homes depreciated in value by $403.1 million.” In addition, another study suggested that the “Eastern Seaboard has lost $15.8 billion in home values. This climate situation has impacted real estate and mad people more inclined to rent than buy beachfront properties, therefore, the risk of maintenance and loss was lifted off their shoulders. Moreover, those who choose to purchase are buyers who have become more mindful of an areas elevation and vegetation to prevent erosion. As climate change causes extreme weather patterns, Insurance premiums will continue to rise. FEMA determines flooding zones and which areas are considered risky. Consequently, any property located in a flooding zone will see an increase in insurance rates. Higher property taxes are the result of fewer residents in a smaller tax base caused by tidal flooding becoming more prevalent. Residents will eventually move away from their communities if they are routinely damaged by flooding. This makes the property taxes climb significantly for those who are left behind. Likewise, poor communities that are affected by climate change see their property values fall as they struggle to pay for rising insurance costs and damaged property. As the effects of climate change become more common, real estate values will decrease due to the increased risk of flooding. In poor communities where their houses are their largest asset, they are more vulnerable and disproportionally impacted by the downward spirals of values in their community.

  8. Climate change is a serious issue, which is affecting many different aspects of life. In particular, real estate values will be highly affected by the consequences of climate change. Climate change will decrease the value of homes near bodies of water, and in particular climate change is diminishing the value of beach front properties. This might seem like good news for any who dreamed of owning a waterfront property, but lives on a budget. However, the higher costs of insurance, increased property taxes, and fact that this property will need to be frequently rebuilt as hurricanes and intense storms are significantly more common than before, may serve as a deterrent and keep you from achieving that dream. I don’t recommend that people start running to buy significantly devalued property. Instead, I would urge people to think about where smart places would be to live in a world with increasingly extreme weather. Smart places to live may be far away from bodies of water, include a natural barrier between your property and others which can drain water, also properties that are slightly elevated will be desirable as these homes will remain safe during times of unexpected flooding.

    What regions can we flock to in order to avoid the adverse effects of climate change? Scorching heat waves and wildfires might make may places in California undesirable to live in. Rising temperatures may be a bigger drawback of living in the south. Major US cities like Miami Beach (Florida), Atlantic City (New Jersey), New Orleans (Louisiana), Galveston (Texas), Charleston (South Carolina), Virginia Beach (Virginia) may be submerged by 2100. Also, increased tornadic activity will be taking place in the mid-west, and increasingly deadly hurricanes will be devastating the north and southeast. Like it or not, we all we be experiencing the side effects of climate change. We can search for individual properties that may be better suited for the drastic changes that are coming, but besides that we all will be experiencing mother nature’s responses to our mistreatment of the environment. I would advise everyone to start being more environmentally friendly and conscious of the impacts that our actions have on the environment. We can limit the impacts of climate change now if we all work together to implement new sources of green energy, reduce our carbon emissions, and actively search for better ways to remove pollution from our environment. These solutions will allow us to make countless properties valuable again.

  9. “How will climate change impact my home’s value?” is a question many home owners won’t think of when purchasing or selling a home. As humans our initial thoughts on homes are, “What modifications can I make to increase my property value ?” or “Can I get this home for a more affordable price ?” As someone born an raised in New York I can tell you that we do not deal with an absurd amount of natural disaster damages compared to other countries. So in the state of New York most home owners are not prepared for floods, earthquakes, tsunami’s or hurricanes because we assume we wont ever get hit with them. Furthermore, when purchasing a home a home-owner should always think twice before purchasing a property because location makes a huge impact on the price of the property. When a family with children decides to purchase a home they lean towards a home that is in a safe neighborhood, within their budget, in a good school area and most importantly a sturdy home to protect them. Water front homes, high-taxes, and high insurance premiums are automatically crossed off their list. This is because they need to stay within their budget money wise and water front homes are not the safest of environments for a family of young children. In essence, will the human race no matter the location their in take into consideration climate change when purchasing a home ? The world is ever changing an each and everyday a new issue will arise making it something else to take into consideration before making a life changing decision. Are you ready for it ?

  10. How Climate Change Could Impact Your Home Value
    Climate changes, what is it? It’s something that we may have heard of and maybe we don’t know what it is. It’s something that in the long term shifts in temperature and weather patterns. It’s something that affects the world we are living in. This article brought my attention because climate change is a reason for the effect on the house market. Climate changes have caught up with the rising seas level and shifts in climate change forecast has caused “The Federal Emergency Management Agency announced New York City’s flood maps as a result of rising sea levels and shifting climate change forecasts. “After all, in New York City, it’s been estimated that approximately 80 percent of the property owners who have experienced flood damage since the maps were last updated in 1983 didn’t have flood insurance.”. Climate changes have impacted home values by making waterfront homes in less demand. Just from the increasing risk of flooding and beach erosion. There have been oceanfront property values that have dropped. I found it interesting how the articles list the reason for climate changes and how it would impact your hom;s value and to which they included “Less demand for waterfront homes and higher insurance premiums. Also higher property taxes and increased property values for some homeowners”. By doing this it grabs your attention because just by that you know what you are reading. It’s something that we should know just by hearing the beginning of it. Just by this it is something that will and is impacting the business of houses. House by the beach people will not buy these houses because they know what might happen. That leads to more money and this leads people to rent instead. Everyone wants to buy a house and they will be more mindful of where. To the sea level and elevation. It’s something that causes extreme weather patterns. The effects of climate change are and will become more common. This we can see will affect housing and real estate just as the article said. This has a more effect on the people that can’t really choose to move and have to live in those areas even if everything gets flooded and impacts everyone.

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