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.

Posted in Business, Science and tagged , , .

47 Comments

  1. Global warming has been an issue for a while now and now the worry is the shorelines of the world. With so many homes being on the coast, rising sea levels will have an impact on their values and all sorts of costs associated with owning them. With sea levels possibly rising as high as 8 feet, it makes homes that are close to the water vulnerable to flooding and damage. This will cause them to be having to pay higher property taxes and have higher insurance rates. The article had a very scary fact for New Jersey that read, “2014 study by the Union of Concerned Scientists suggests that by 2045, some cities, like Atlantic City and Cape May, New Jersey, can expect to see tidal flooding 240 times or more per year” (Geoff Williams 2019). This will cause the property taxes and insurance to skyrocket. It is also important to note that with all the concerns over property damage and rising prices, there will be less interest in waterfront homes all across the US. This will make it very hard to sell a house for the amount the seller wants to sell it for. Different situations are going on with lakes as the article explains. Some lakefront homes are not doing so well with algae going down while others are booming. There is still one thing that remains constant which is that homes that are under 10 feet above sea level will be in trouble over the next few decades. Also, coastal states that are used to having hurricanes and floods can expect those to increase as well which means that prices of property taxes and insurance will go up. Going off the topic of water and onto heat, areas that are known to be hot will be even hotter. This will cause problems for crops and other types of living. The whole ecosystem will begin to change and in a way that will be nearly impossible to predict, but it will not be a good change. Also, those living in areas such as the southwest will have problems with the heat. This will cause fires and dry out the land and make it harder to live in these areas. With fires becoming more and more frequent, homes will be in danger and this will cause property taxes and insurance to go up. Much like waterfront homes, homes in warmer climates will be in danger of rising prices and less demand for them. These are only a few of the reasons that the world needs to pay attention to the world around them and work together to find a solution to keep things like these from happening.

  2. While climate change is something talked about a lot in the news and in politics, something that I had not heard of or thought of in terms of potential consequences is home and property values. Every year to a couple of years, our homes and property are assessed by the state to determine its value. This shows how volatile the housing and property markets are. There are already so many factors that can change the value of our homes and property without climate change consequences thrown into the mix. From the location, interest rates, and the overall economic climate of the local area, home values can change very frequently. As an example stemming from the current COVID-19 pandemic, home and property values have shifted upwards in rural locations as many urban livers want to move away from highly dense and highly congested areas. Houses in my neighborhood are selling for a lot more than they would have last year and super quickly also.

    According to the US News article, there are multiple ways in which climate change can affect home values. Many peoples’ lifelong dreams are to buy and own a house on the coast that has a great view of the ocean and easy access onto the beach. As climate change gets worse and water levels continue to rise, the appeal of oceanfront homes has been driven down while insurance premiums, property taxes, and interest rates for home mortgages skyrocket. Damage to homes is inevitable when sea levels rise. Because of this, home insurance companies will charge homeowners more money for their monthly or yearly premiums because they perceive these homes as being at a higher risk of needing to use their insurance. When people move away from waterfronts and the local government does not reduce its spending proportionately, each homeowner will see a rise in taxes as there are fewer people to split up the costs of their township or city expenditures. Lastly, homeowners looking to set up a mortgage on their homes will see a much larger minimum interest rate. Similarly to the insurance premiums, creditors will raise the interest levels to ensure that they can cope with the loss of the house if climate change destroys the home or lessens its value significantly. The bank will lose a lot if the house goes under so they try to minimalize potential losses by charging higher interest rates.

    As shown in the article, the effects of climate change on the citizens of the United States is unsurpassable. Everyone will be affected in some way. Not even homeowners who have fully paid off their mortgages can be safe. Homeowners who live in areas that will be increasingly affected by climate change must prepare and expect to spend more money and be at more risk than those who live more inward. This begs many questions. If climate change were to worsen and more homeowners are at risk, should there be tax write-offs to those living on the coasts? Should banks and insurance companies not be able to discriminate against these homeowners? What should the government do to help these homeowners from losing thousands of dollars in lessened home value?

  3. It is not surprising to me that houses especially near the oceans are having higher premiums then those who are on land. When looking at a sea home the first idea that is given is whether if there is a severe storm will your home be hit. With mentions of recent hurricanes being hit from the past two years you see that house values are going down because they are most at risk for being hit in a storm. Not only this, but with the house value decreasing, this leads to when the homeowner needs to pay for a higher premium it becomes of almost equal value of what their home could equal too. I believe that it is still a luxury to find a home on the ocean due to the view it has and not the house quality. We see it everywhere online where a house is going for 1.2 million dues to the view it has of the ocean and not of the quality the house has. In the article what caught my eye was on how they projected that by 2045 there will be smaller communities by the ocean due to the high tides they include and the financial risk. Financially it is a risk on the insurance companies to finance you by the ocean with the likely hood of your home flooding or worst being taking down. With this I can predict that communities will migrate in land which will create an over population in areas that cannot hold that much. It was mentioned in the article that real estate brokers are killing it in Florida right now due to the rates being low and people buying since the storms have passed. What has not been considered is when hurricane season comes back the homeowners will be back to spending more money on the home that they hoped would not be as much. Overall, I am not surprised that property taxes and insurance are increasing due to the nature in which storms have been. It needs to be seen that if we keep continue this increase of flooding and storms communities are going to shrink and properties will not only decrease value but vanish.

  4. For as long as I can remember, global warming and climate change has always been an issue, but hearing that climate change can impact the value of your home is new to me. There are so many homes across the United States that are on shore lines, and with sea levels rising, the value of their homes will be impacted as well. With sea levels rising, it obvious to say that the houses along the shore lines are going to be more vulnerable to flooding now. With houses being more vulnerable to flooding, their insurance will go up more than it already is. I believe it is a luxury to be able to live down the shore and on a shore line, but this might not be the case going forward. With climate change impacting homes along the shore more, and hurricanes over the past few years continuing to get worse, it might not be ideal to live down the shore anymore. In the article it notes that by 2045 communities by the shore will shrink due to sea levels rising and the financial risk that is associated with living by the shore. Insurance companies and banks are taking the risk of financing your home because they know that eventually your home is going to take damage and flood. This causes the insurance companies to charge a higher rate since the likely hood of houses flooding and getting damaged is growing due to sea levels rising. The article also mentions that real estate brokers in Florida are doing great since prices for homes are lower than normal. This I found interesting because Florida is one of the states that get hit the worst with hurricanes, so these houses are selling for cheaper than normal, but down the road they are going to get damaged by hurricanes and money is going to have be paid to fix them when that happens. The money that people are saving now on the homes is going to be spent eventually once hurricane season comes around again. In conclusion, I always knew climate change was an ongoing issue, but it is interesting to see now how climate change is impacting the value of homes, and it is only going to continue to impact the value of homes as time goes on.

  5. Interestingly, the idea that climate change can and will have a direct and definitive value on property values and community populations was a concept pushed heavily in an Environmental Geology Class taught at Rider University. Part of the class syllabus was identifying the real-world impact of environmental issues and concerns to quantify the value of some of these problems. As it was explained to us, oftentimes people can look at environmental issues and disasters as unavoidable acts of Nature that must be dealt with and recovered from. Our Professor Dr. Husch explained contrary to this that ‘People are just idiots’ and continue to build and develop in the worse possible geographic environments from volcano bases to heavily flooded areas, to cliffs on the verge of collapse due to erosion. Specifically, he mentioned the oceanfront communities of North and South Carolina that are continually bombarded by hurricanes, flooding, and erosion. Erosion especially costs the cities and communities millions in repair and maintenance to maintain beach size and sufficient due barriers. These barriers are routinely destroyed and leave the communities even more vulnerable to continued flooding after storms until the dune system is repaired. The value of tourism in the areas is offset to a large degree by the costs required to maintain the areas to a degree suitable for vacationing and living. A suggestion he provided was to restrict development and property construction to a certain distance from all vulnerable shoreline areas and communities with known flood planes and histories of consistent flooding and damage. By doing so you maintain the value of properties as “the closest” to the nearest shoreline without putting the communities in as much danger or subjecting them to constant damage and rebuilding efforts (additionally, this would decrease required governments spending on repair efforts). There are obvious drawbacks to this suggestion but simply implementing a ban on new construction or development in vulnerable areas could eventually push back communities farther from the shore and reduce the damage caused by storms as well as the need for constant erosion mitigation.

    This article specifically mentions the potential for increasing property values in lakefront areas and inland vacation destinations. I think this is potentially the beginning of initial recognition that shorefront properties are simply not suited for private ownership and maintenance. The climate change referenced in the above comments as well as by Geoff Williams is a consistent effect that is unlikely to reverse or slow significantly over time. The possibility that global communities will be able to band together and reduce the effects of climate change as a whole in the next decade are dubious at best and as shown by the increasing propensity and severity of storms systems and hurricanes, it’s likely that property damage of oceanfront properties will only grow worse. As Mr. Williams explains, people being to move away as the costs of maintaining shorefront homes exceed the derived value of living there, a cascade effect will see taxes increase and costs of living rise significantly until it becomes far too expensive for private ownership. The current standard of shore towns along the coast will likely cease to exist. Vacation activities will be redistributed to more affordable locations. This is all merely speculation but ideally, a move away from shorefront vacations would benefit local ecosystems and the tributaries that are commonly polluted by people.

    If anything, a truly impactful economic loss affecting millions of people along the coast would be a wake-up call that global warming and climate change are not just environmental disasters but true financial disasters as well. Localized recessions along the shore could decimate communities and ensure that the reestablishment of towns and cities would be a laborious and expensive process. In the short term, I would guess that homes immediately on the water would lose some value first while homes within a few miles of the shore would see higher property values as people start to equate a zone of safety with reduced maintenance and overall higher value. A potential buyer or builder is much more likely to invest a large sum of money into a home if they are reasonably sure that the home is far enough from flooding to be moderately safe. Homes directly on the ocean may see their value diminish to nothing over time, resulting in a reversal of the smaller distance ? higher price equation representing the home value in most shore communities (at least for a certain distance of 1-3 miles).

  6. This article discusses how climate change causes issues like rising sea levels and hurricanes which are affecting the real estate market. Climate change causes increased water temperatures which is the perfect condition for more hurricanes during each hurricane season. The article also refers to a study that showed the “Eastern Seaboard has lost $15.8 billion in home values” due to increased tidal flooding caused by rising sea levels. These concerns are normally discussed with real estate agents, but the waterfront market still remains strong. Part of this is due to people backing out of the market and making room for interested buyers to enter the market. Something the article does not address that I think is important is the mindset of buyers. An important consideration is about the people who are drawn to this type of real estate. Those who are interested in investing or purchasing oceanfront houses are usually people who are wealthy enough to buy these homes in addition to a house they currently have and can afford to pay for repairs. These people still want to pay for these houses regardless of the understanding that floods could tear up the house, be the cause for yearly repairs, and be the reason for higher insurance premiums. As extreme weather conditions continue, insurance premiums increase in certain areas. This has become so bad that some properties that used to be considered safe by FEMA are now considered unsafe and run higher premiums.

    Climate change is not only affecting hurricanes, but the sea levels which are rising. I also think some of these people may not be aware of the climate change concern in that area and may lack the sufficient understanding to know why purchasing one of these houses may not be the best investment. There is also an understanding in the Eastern seaboard that every year there is a “hurricane season” that is the time of year that hurricanes are more likely to occur. Most people know this, but they may not know that climate change is the reason hurricane season is getting worse. As a result, people prepare the best they can for any predicted damages and solve any issues that arise to their house for that year. Even houses that are not located by the sea need to worry about hurricanes and they can not control the damages done to their house. This ideology may be an additional reason as to why people will buy houses by the ocean even though they know the potential dangers and increased expenses they can incur along the way. In summary, science shows us that we should worry about living near the ocean, but there will always be people who want to live a lifestyle where they can enjoy living in a nice oceanfront home where they can easily walk to the beach during the summer on vacation. There is nothing wrong with wanting to live by the ocean and paying heavily for it, but as time goes on, people will start to move inward if we can not reverse the effects of climate change.

  7. Climate change is a problem that has a wide range of consequences on the planet at large. From increased chances of fires, higher sea levels, monumental changes to various ecosystems, and many more, the majority of people are fearful about the ongoing crisis of climate change. One market that will be heavily affected, according to this U.S. news article is the real estate market. Geoff Williams details in his article the damaging effects climate change has on property value, like how the increased number of hurricanes and rising sea levels lead to decreased demand for waterfront homes. Being an east-coaster myself, I have seen the devastating effects hurricane can have on a market, like when Hurricane Sandy ravaged through Long Beach Island, New Jersey, and destroyed countless properties, and cause widespread flooding across the island. Similarly, Hurricane Maria devastated Puerto Rico and drove down any property value in Puerto Rico, among numerous other damages. Of course, this is no problem for wealthier Americans who can afford the damage caused by climate change and pay for repairs, but for those in the middle class who have a lot more to lose, the risk becomes much higher when considering buying a waterfront property.

    One other area Williams touched on is the property taxes. As a result of flooding and decreased interest in waterfront properties, property taxes will likely soar. Issues like this make me fear for people who love living by the water and want to live by the beach. Sure, people who already have properties like this can try to sell them, but interest will most likely be diminished due to fears of future damage as a result of rising sea levels and not many people want to take that financial risk. If people do not start making efforts to push back against the ever-increasing damage that climate change causes, people will start moving closer to landlocked areas and the waterfront market will be completely underwater.

  8. Climate change is a huge problem that has plagued the world for decades. With increasing global temperatures have come rising sea levels and various harmful effects on the world. Aside from just the temperature changes and physical toll that climate change has taken on the world it has started to affect the value of homes. This article addressed impacts such as less demand for waterfront homes, higher insurance premiums and property taxes, as well as increased property value for other homeowners. This is an aspect I never considered when addressing climate change, but the article shows that it is very prevalent. With global warming causing increases in sea level, flooding is becoming more of an issue. With more frequent flooding demand for waterfront homes has declined due to the fear of the homes being flooded and causing costly damage to the property. Along with the possibility of more frequent flooding comes higher insurance premiums to make sure that the home is insured given the possibility of a flood and damage being caused. Then, these problems have caused people to move away from areas where flooding is a problem to neighborhoods where flooding is less of a threat to their home. This causes the property value of waterfront homes to decrease while increasing them in residential areas and in turn raising taxes in these areas as well. The greater demand for inland homes makes all those homes increase in value and thus the value of all non-waterfront homes could climb. This is a very interesting way to look at climate change and is completely valid. I never thought about how climate change can impact the values of homes, but its effect is real and will cause changes in the pricing of homes in the future.

  9. Climate change has become drastically more evident within the past few years, with the extreme weather changes and prolongment of certain seasons. The sooner this issue is acknowledged more profoundly on a national scale, issues as described in the article will only worsen. Environmental issues affect more than the lives on Earth at this very moment. We need to acknowledge that whatever we do not address right now will heavily impact the coming generations even deeper than now. New Jersey is known for their beaches and having lived here my entire life, I know more than a handful of people who own their own private beach home that they regularly visit during the summer. While some campaigns have scratched the surface to combatting climate change, such as clean energy, sustainable landscapes and so on, we must continue to advocate for the survival of the world. Without the culture of the Jersey Shore, so much New Jersey culture is lost to the real estate market. The growth in sea levels can potentially destroy more than just the real estate market, the possibility of losing home values will increase property taxes higher than they already are within the state. In the US, the cost of living increases annually around 2% in the US alone. With such a drastic increase in the cost of living, the gap between economic classes will grow even more, making it that much harder for people to live within a stable living environment. The chances of people who live in poverty ever getting out of poverty will become next to impossible, leading to the loss of hope. Climate change affects so much more of the world than just the weather, it has a domino affect on all life on Earth and needs to be addressed immediately.

    Source:
    https://www.indeed.com/career-advice/pay-salary/average-cost-of-living-raise

  10. Climate change has always been a big issue that we as a world have faced however it still hasn’t received the attention nor the necessary action needed to correct it. For many years numerous news outlets and leaders would downplay its existence to not start panic or just because they themselves don’t believe in it. Now we are seeing though different predictive models are well aware of the threat of climate change and this is forcing people to act upon these models. Having lived in New Jersey for my entire life I know how much we value and love our shores but if those individuals in power don’t begin to take this seriously, those times we once knew can very likely be distant memories. Many predictive models for New Jersey show that all along the Jersey Shore and especially up by the Meadowlands could see a rise in sea levels of over 3 feet which would be devastating for us as a state. And like how the article states beachfront homes in New Jersey have already started to be hit hard by this incoming threat. Unfortunately, it seems to be that in our current society if you want to get someone’s attention you hit them where it hurts and that would be their wallet. The article details other factors that would eventually hit these people where it hurts such as increased taxes or higher insurance payments but until this happens people will continue to be reactive as opposed to proactive. Things in our society continually get worse and worse and people decide to continually discredit its existence when the extensive research on it is clear for all to see. New Jersey could be a state hit very hard by climate change and unless we decide to be proactive on our own we are running the risk of severely screwing ourselves over. This change starts with bringing in individuals who know of the impending danger and have an actual plan on how to fix these issues. Until this happens I think not only our state but our country and even the world are running the huge risk of potentially destroying our shores and our way of life.

    https://www.northjersey.com/story/news/environment/2019/08/23/new-jersey-already-seeing-effects-climate-change/2069961001/

  11. This is an article that particularly attracts my attention as I have always found an interest in properties, houses, and the effects that fluctuate their prices. As the author, Geoff Williams, mentions there is a forecast of a drop in demand in many water bound areas due to climate change, such as New Jersey. As a New Jersey native, I have witnessed the effects the recent storms have had on the state and the housing market. Interestingly enough, though, from my own personal recollection of the past six months, New Jersey has been a odd hot spot for many houses. This goes against what the author has stated, but from what I have personally seen over the past six months is the COVID-19 pandemic driving the market down, with many people taking advantage from different states, especially New York. This would include the waterfront and flood-prone areas of New Jersey. The article Williams wrote is from late March, which would not exactly include information pertaining to what I have mentioned, then again, the information I included only pertains to a small portion of the article.
    Going back to what Williams has said, the insurance premium increases make for a very awkward situation for the insurance companies. Angry clients, a lack of productivity from the county and state, and FEMA giving out new flood zones will surely make for trying times for the insurance companies, all due to the change in climate. As far as property taxes go, nobody wants to tack on another some-thousand dollar amount to their annual costs. The common trend would show that they are increasing because of less settlement with property owners, which makes for less revenue for the local governments. Climate change is not a new concept, but it certainly has not been a topic that is fit for consensus. The new trends of less favorable prices for houses, properties and taxes may sway people to believe that climate change is real. I will give no opinion on the matter, but from the evidence Williams gives in his article, climate change is the biggest factor in play for these prices increases.

  12. Climate change is having a major impact on all aspects of human life. Currently talked about, and what U.S. News article highlights, is the impact climate change is having on real estate values. It mentions that many homes are now in flood zones, which were not in flood zones in previous years. Unfortunately, when homeowners do not realize their house is in a flood zone, and their house floods, they do not have the proper insurance to protect themselves and save themselves from financial burden. As I know from my father being an insurance broker, when a house is in a flood zone, it is much more difficult to insure and rates are super high. While the house value may be cheaper because it is in a flood zone, the insurance prices will make up for what a buyer saved from buying a house in a flood zone. The article mentions how there is a decrease in the demand for waterfront homes. Many people are reluctant to buy a house on the water, or close to the water because of the flood risk. A storm, or hurricane, can tear down an entire house. In 2012, when hurricane Sandy hit the Jersey Shore, three of my family members lived on Long Beach Island. Two out of the three of their houses were completely demolished. My grandparents, who live on the bay, house was gone, nothing left but dirt. My uncle’s house who lives on the main street in between the bay and the ocean, had nothing but a foundation and debris left. Buying a house on the waterfront is a dangerous investment. It could be destroyed by a storm or completely flooded, which is why so many buyers are reluctant to by waterfront homes. Owners of homes who live in flood zones pay higher insurance premiums because of the risk the insurance company is taking by insuring them. If a house floods the company who insures the home must pay for damages. This could end up being upwards of one million dollars. The company must charge a higher premium to make sure they are making it worth wild. Climate change is an extremely important issue and we do not realize how it affects our daily lives. Homeowners who currently own waterfront homes have an increase in property value, but many people look to live inland, so they do not have to deal with the risk of flooding and increased insurance premiums. The market will always be changing, and the perspective buyers will be at a constant change as well, but climate change is happening consistently. Climate change is a human problem and many small changes in people’s daily lives can curve climate change. It is important that we take into consideration what climate change can do to people financially, and not just leave it as a planetary issue.

  13. Global warming has been an issue for decade and now its taking a toll on property. Since most of the concern is along the shorelines we can see demand for waterfront homes decrease which is reasonable especially since it is common to have hurricanes and high tides ruin a lot of properties. For example, “If we had gone ahead (and closed on the property), we might only have an empty lot and a mortgage,” Ailion says. Ailion suspects that he isn’t the only one who has backed out of buying beachfront property because of worries about climate change. “It’s very serious. Serious enough to keep me, and perhaps hundreds of thousands, out of the market,” he says. If he does decide to ever live on the ocean, Ailion says that he is “more inclined to rent and allow someone else to take the risk of maintenance and loss.” This worked in Ailion’s favor since he would have still been stuck paying for something he wasn’t receiving. This was also prevalent in my small town of Keansburg, NJ. After Hurricane Sandy in 2012 Keansburg had a bunch of flood, wind and electrical damage that it took three years for things to somewhat look normal. There are still homes being lifted in the area till this day. However, after Hurricane Sandy and the most of the damage was fixed I and a lot of neighbors noticed Keansburg started to take in more renters and a lot of the renters in the neighborhood stated they didn’t want to own in a hurricane zone, which was smart for people who live in areas temporarily and if impacted by a hurricane they won’t have to worry about the renovation costs and other expenses which can be an even bigger burden than the natural disaster.

  14. For a while now, global warming has been a concern and now the world’s shorelines are concerned. With so many homes on the coast, rising sea levels would affect their values and all kinds of costs associated with their ownership. If you live in an environment ravaged by floods , fires or beach erosion, or if you are worried about the warmest years on record from 2014 to 2018,It makes homes that are close to the water vulnerable to flooding and destruction, with sea levels potentially increasing as high as 8 feet. This would make them have to pay higher taxes on land and have higher insurance premiums.Because of this, home insurance providers will charge extra cash for their monthly or annual premiums to homeowners because they consider these homes to be at greater risk of having to use their insurance. Every homeowner would see an increase in taxes as people move away from the waterfront and the local government does not decrease their spending proportionately, as there are less individuals to share the costs of their township or city spending. Global warming and climate change are not just environmental disasters but true financial disasters as well.

  15. This article and blog seems to make a lot of sense. However, it is also correct that New Jersey has not seemed to be impacted by this as of yet. New Jersey shore waterfront property value is still very high. Demand and real estate prices are steadily increasing at the moment. This is true even after some major hurricanes have decimated the New Jersey beach towns over the past decade. Although, most of the homes that were destroyed and rebuilt had to be built high above the ground. So, it makes it curious as to whether insurance companies are raising prices to recoup the money that they lost due to make up for past losses.
    There is another issue that could potentially make homes lose their value in those areas. Many people buy these properties as investment properties to rent out, or summer as their own summer vacation homes. The allure of the beach town may slowly fade as businesses struggle to remain operable to flood and storm damage. There is the drawback of potentially refunding money if the homes are being rented out. Additionally, it is difficult for the homeowner that does not live there full time, to have to worry about securing these type of vacation homes, as storms are approaching. It may not be worth the hassle and additional worries.

  16. Climate change has become one of the main issues our society needs to fix. I hear about climate change all the time on the news and the problems it is causing in the world, but I have never heard that it could affect the value of homes. This article reveals that climate change could impact the value of homes by less demand for waterfront homes, higher insurance premiums, higher property taxes, and increased property values for some homeowners. I think that if more people learn that climate change will affect the value of their homes, then they will be more likely to try and actually fix climate change and the problems it is creating. People usually don’t care about an issue unless it affects them personally. For instance, tt has been my dream to own a home on the beach, but after reading this article I realize this dream will not be doable unless climate change is prevented. The article mentions a study that suggested the Eastern Seaboard has lost $15.8 billion in home values. This is concerning because there have been several hurricanes and superstorms that have hit the East Coast in the last few years and it seems that this is why home values are going down. People don’t want to buy homes that will be damaged due to the climate. Climate change is considered to be the reason for the increase of hurricanes and superstorms on the East Coast. If I ever want to own a waterfront home, then I am going to have to do my part to prevent climate change. The article also mentions how homes in Marin County, California have higher insurance premiums then they did in previous years due to the increase of flooding and extreme weather patterns in the area. There is no evidence that this is because of climate change, but I believe it is and I believe that this is going to start happening in a lot of places around the world. The article also mentions a study that suggests by 2045 cities, like Atlantic City and Cape May, can expect to see tidal flooding 240 times or more per year. This is very concerning and people that live in these places need to take these predictions into consideration when deciding whether to move or not because of the increase in tidal flooding. Government officials believe that the people who live in these places will move because they don’t want to be effected by the flooding. This means that the people who decide to stay will have to pay higher property taxes because there are fewer residents and a smaller tax base. Hopefully the people in charge will start to realize the effects and potential effects climate change is having on society and the economy and come together to fix the problem. If climate change continues to effect homes on the shoreline, then I think we are going to see a crisis in the housing market.
    Teresa Richardson
    richardsote@rider.edu

  17. This article by US News addresses one of the less-discussed topics related to climate change: the impact on property (especially home values). The author aptly states that climate change is likely to have many negative effects on coastal communities and residencies, including less demand for waterfront properties, higher insurance premiums, and higher property taxes. These negative side effects do indeed make sense as climate change has caused rising sea levels and stronger natural disasters (especially hurricanes). As a side note, the effects of climate change have resulted in worsening storms for several reasons, including rising air temperatures; rising water temperatures; and increased evaporation of ocean water into the atmosphere, which can worsen hurricanes and rainfall (National Wildlife Service).

    In this article, the author makes three general points worthy of discussion. First, there is likely to be less demand for waterfront houses as flooding and hurricanes have presented more of a financial burden for homes in danger zones. The result of decreased demand is a decreased value of these homes. A study by Columbia University suggests that homes along the Eastern Seaboard have lost $15.8 billion in home value, a dramatic number that is likely to scare away potential buyers. Next, as long as extreme weather conditions continue, insurance premiums are likely to rise. The simple explanation here is that when FEMA changes flood maps to include areas of danger, the homes in these new maps face higher insurance premiums in the event of a natural disaster. Interestingly enough, when my family purchased a home near a river in NJ, we had to consider the financial effect of the flood insurance (which was actually lower than other houses on the block because our new home was raised after Hurricane Sandy). The last major point of discussion is that climate change will inevitably cause a rise in property taxes, as people are moving away from areas that are being flooded, and these communities will still have to pay for infrastructure and other expenses somehow (given that fewer people are living there, raising taxes is a necessity). All these drawbacks to waterfront communities caused by climate change are logical in their application, yet are rarely discussed by those who mention the phenomena. The ultimate question raised in this article is: is it even worth buying a waterfront home?

    In response to that question, I think my recent experience is surprisingly similar. My family recently moved to a home that is a few houses down from a large river. Before purchasing the home, we had to consider the effect of rising water levels, increased damages caused by hurricanes (especially since Hurricane Sandy hit the area hard in 2012), and the impact of increased taxes and insurance rates. Now, the area we live in is not experiencing a loss of residents that would raise taxes noticeably, in fact, people seem to be recklessly eager to live in neighborhoods like mine. I suspect that many people feel climate change and rising sea levels are something that future generations will have to worry about, and won’t affect their homes in their lifetime. The general view among many Americans is: how are we to know when the negative effects of climate change will strike? And is it even possible, or worth it, to alter our lifestyles around climate change? Thus, many folks don’t even consider the possible effects of climate change when buying a waterfront home. I think there is some logic to this, even though many studies cite opposite sentiments (decreasing property values for these homes/decreasing demand). I think if people, especially retirees or older people, are seeking to live in a waterfront home, they aren’t as likely to be worried about hurricanes and flooding; these issues are not as likely to be of significant consideration for older homeowners. While it is most definitely possible for homeowners to experience hurricanes and rising sea levels, the enjoyment of a retirement home might be worth the small chance of experiencing nasty flooding (which isn’t a guaranteed occurrence).

    Similarly, some precautions can mitigate the negative effects of flooding and hurricanes, such as raising a home or taking proper care of bulkheads and sand walls that prevent erosion and the encroachment of the ocean. While many Americans see climate change specifically as a threat, many feel it is not something that should prevent them from buying a home, especially if the effects are not daily, instead negative consequences are only possibilities that might not result in terminal damage. In all, I am someone who believes that climate change is a serious threat to our planet and should be addressed through investments in cleaner energy, carbon emissions standards, and similar measures; however, when it comes to investing in property, climate change is not at the forefront for many homebuyers.

    Sources
    https://www.encyclopedia.com/environment/energy-government-and-defense-magazines/seawalls-and-beach-erosion
    https://www.nwf.org/-/media/Documents/PDFs/Environmental-Threats/Climate-Change-Natural-Disasters-fact-sheet.ashx

  18. This article discusses climate change and its effects on the values of homes located near oceans and beaches. As a result of global warming, climate change has become a much greater issue now than it has ever been before. The ever-increasing global temperatures are causing glaciers to melt in the poles, adding to the ocean’s volume of water. As a result, many areas around the world are prone to experiencing severe flooding, especially the populated areas located by the ocean. Year after year, it becomes increasingly more dangerous to live in these areas, and so people are wary of living in coastal homes. And so, over the years, the value of homes located in these areas are affected by climate change in a number of ways. The article specifically discusses the following ways that home values are affected by climate change: less demand of waterfront homes, higher insurance premiums, increased property value for some homeowners, and higher property taxes.

    Naturally, people would think that the value of homes would decrease substantially because of the risks that come with coastline home ownership. However, it seems that the values of homes aren’t really affected by climate change. According to Paul Grover, a real estate agent referenced in the article, “…there’s an increased awareness of the effects that climate change can have on a property, but overall it has not impacted home values”. Climate change is responsible for raising awareness of the dangers that come with coastline living, but it has not affected the actual value of some homes. However, in other states, coastline homes do in fact depreciate drastically in value because of damages done by storms. Property taxes also tend to increase as a result of climate change. If areas are constantly being flooded (or at least frequently at risk of being flooded), and few people are residents of the area, then the tax base of that area would be smaller compared to other areas. Therefore, it is likely that property taxes would increase under these conditions.

    Insurance rates on coastline homes have increased because of climate change risks. Oceans are already increasing in volume because of the glaciers that melted as a result of global warming. This means that tidal waves are bound to be larger in size, capable of causing serious harm to coastline homes and cities when floods occur. It costs a great deal of money to repair serious flood damage so frequently, and so insurance premiums on these buildings would be higher so that repairs can always be done. Lastly, some property values can be increased as a result of climate change. If homes by the coast are feared to be the most dangerous, then people would naturally want to find homes that are further away from bodies of water. Thus, people would find these homes to be more valuable because they are the safer ones to live in. In addition, people won’t have to worry about floods damaging their homes.

    Climate change is a serious issue that affects many different aspects of business. People are constantly innovating technology to be more eco-friendly do emit less carbon-dioxide, which is a key contributor to global warming. Coastline areas are at greater risk of being flooded because of the rising sea levels, and so real estate agents are constantly preparing for the worst. As a student studying business, I appreciate how this article highlights just how important it is that individuals, as well as businesses, understand the relationship between climate change and the business world.

  19. Climate has been a very big issue for some time now. It makes a lot of sense that climate change is affecting all types of industries for people. The housing market has always had external factors affecting the prices of homes. In the article, it states that climate change could affect the value of homes by the coast such as lakeside or oceanside homes. Property taxes are through the roof for homes. In the article, it states that Eastern Seaboard home decrease by 15.8 billion dollars. That number is difficult to fathom. Roughly eight years ago, New Jersey was hit with a hurricane that destroyed numerous homes along the coast. The housing market in that area plummeted. Many houses were destroyed, Insurance premiums went through the roof. Houses located in close proximity to the shore are always at risk of floods and rough weather. Unfortunately, the housing market fluctuates a lot within different communities, and it is difficult to predict weather conditions. The housing market is fairly predictable and easy for investors to swoop in and pick up devastated properties for a discount. Global warming is a very big problem for the environment, and if it is not controlled and prevented then our economy will slowly crumble starting with the housing market, and on to other industries.

  20. Climate change has been one of the important issues that the world has been concerning over the past years. Climate change has been caused by the world’s population that is not caring about the environment. It has been caused by burning more fossil fuels and the pollution created by the greenhouse gases. Those two acts done by big industries are affecting the world’s temperature which is been increasing in the last five years. As the author explains, as the temperature rises, the global water level is going to be higher since ices are melting down. As the water level rises, more cities and towns are going to be threatened, and it will cause more floods. Flooding will harm people and the houses next to the water, since the water level would be higher. However, as the article states, houses will not be ruined just physically, but they will incur in money losses in future. As the water level rises, houses next to the water are going to be cheaper in future since water would be a threat for those people who are going to live inside those houses. As the price would go down, those house owners are going to lose much more money on the properties’ value. Those properties are usually insured when they can be threatened by water flooding, and insurances have high costs. As the water level rises, the probability that the property is going to be affected by the water would be higher, so insurance companies are going to rise the price to insure those properties. Property owners would be affected by a cheaper property value and by high insurance costs, and if they would like to move somewhere else, they would have to pay more for those properties that are not affected by waterfloods. Property that is not affected by the water would have higher prices since the demand for those properties would be higher. People are going to move from the waterfront to the city center to be safe, so climate change would have a huge impact on the environment and on people’s lives.

  21. Climate change has been a recurring issue for a long time now and it is widely talked about. While I do know a lot of this issue, I never knew that it impacts the value of your home. As I read the article, it makes sense as to why this happens. Climate change impacts home value by increasing insurance premiums, increasing property taxes, increasing property value, and results in a decrease of demand for waterfront houses. Climate change affecting the demand for the waterfront completely makes sense. Due to climate change, the sea levels are rising at an alarming rate which is resulting in an increase in flooding. This is causing property to be damaged which is resulting in people not wanting to buy or rent a house on the waterfront. Not only does this make people not want to buy or rent a house on the waterfront, it would also result in higher insurance premiums. Because flooding causes costly damage to the property, this would mean that the home owners would have to make sure that the property is insured. It is also important to note that if flooding is a recurring problem, residents will eventually want to move. This is an even bigger problem in towns that have fewer residents. If more people start to move away, property taxes would increase significantly due to there being a smaller tax base.

  22. The talk of climate change is something that I hear a lot about over the internet and also the news whenever I watch it. When I think of climate change, I would have never thought about the home values declining but thinking about it now, it makes more sense to me. When the article was stating the ways it can impact people’s houses such as the lower demand from waterfront homes, increase in property tax and high insurance premiums, I think that more people would put more attention to the issue of climate change if everyone knew that it can affect themselves. With all the hurricanes that have hit the East Coast, the damage it has caused for a lot of people have put them in very unfortunate circumstances that they could not have prevented. While the hurricanes haven’t affected me in where I live in New York, I can still see why it would have such a huge impact on the prices of homes. For New Jersey especially, the Jersey shore is a very popular place for people to own homes there since so many people visit the Jersey shore in the summertime and the fact that the homes are in danger due to climate change, it can potentially deter people from visiting there. In states that already have a very high property tax, an increase in that would be even worse for homeowners since they might not be able to financially afford to pay that increased tax anymore resulting in them moving somewhere else that they will be able to afford a roof over their heads. The real estate market would also take a huge hit because if there are properties that are prone to be affected by hurricanes, they might not be able to sell very easily in which they would have to reduce the price in order to make the property look more attractive to buyers.

  23. In the past decade, climate change has been a serious part of discussion around the world. We have seen it come up at United Nations meetings as well as the recent Presidential and Vice Presidential debates. While we are trying to do the best we can do avoid climate change, it is still progressing, and we are seeing it through the weather. In the past year, we have seen a crazy amount of hurricanes take place around the country. Flooding occurred in cities leaving people dead and homes and businesses destroyed. It is clear that things can get very worse in the near future. While climate change is a current threat to our world, I would never expect it to relate to values of homes. Based off the text in the article, I can actually understand why there can be a smaller demand for waterfront homes. In 2012, New Jersey was hit hard by Hurricane Sandy, specially the Jersey Shore. Homes were demolished all over the Jersey Shore due to the serious flooding. I know people from Long Beach Island who lived on the bay side and basically had their homes washed away. Given the state of how things are going with climate change, who would really want to live by a large body of water? A hurricane can come at anytime and destroy these homes again. While these homes are insured, it does not mean that people still want to live there. In fact, these homes will probably have higher premiums because of the increasing risk of climate change and hurricanes. Another state that has been getting hit hard with hurricanes is Florida. While there are always some hurricanes down in the area, they are never as bad as how they have been the past couple of years. I believe it was two years ago where the gulf part of the state got hit with back to back hurricanes in the matter of two weeks. Climate change is obviously happening and data by scientists can prove it. Only the people around the world can try and make a change. If not, things can get a lot worse. It definitely is not fair for people to lose value in their homes because of climate change. Unless something changes, it looks like it end up being that way.

  24. The threat of global warming has caused many people to reconsider buying coastal properties. With 2014-2018 being the warmest years ever recorded, the polar ice caps have begun to melt releasing more water into the ocean. This causes the sea level to rise and is a threat to oceanfront properties especially those already susceptible to flooding. My dad is a real estate agent in New Jersey and he similarly to the person in the article will not consider a house in a flooding area. As the sea level rises there is less and less available real estate that he would even consider for my family because more areas keep getting upgraded to flood areas.
    Global warming needs to be stopped and reversed, but this is proving to be much more difficult than someone would expect. Politicians disagree on whether or not global warming is real or just a phase, with many arguing against proven science. This is also very costly for the economy, but even with the lack of government enforcement many companies are taking it upon themselves to reduce their contributions to global warming. Many companies have goals of being carbon neutral within a couple of decades. Even China which is one of the worst offenders has pledged to be carbon neutral by 2060.

  25. Climate change is a very important and pressing issue that over the years is becoming more and more of a concern around the world. Climate change can be seen to have effects on many different countries, industries, economies, and much more. Individuals are increasingly becoming more aware of the issue and thus are concerned about how it will affect them personally in the future. Recently, the real estate industry has been seeing a significant increase in the effects climate change has. The article mentions four main ways that climate change could impact one’s home value such as: less demand for waterfront homes, higher insurance premiums, higher property taxes, and increased property values for some homeowners. Although there is not a current effect or decrease in demand for waterfront homes, without the help of the federal government and with the rising sea levels, in the future, purchasing a waterfront home would be a very risky investment. Hence, the demand for such homes would decrease once the federal government cannot maintain the support after damage caused by flooding, erosion, and other problems caused by the rising sea level. The same way car insurance goes up after one gets into a car accident, the same concept applies to homes. With more and more damage caused by rising sea levels and other climate change effects, homes will be more prone to damage and consequently would require more insurance coverage. Similarly, property taxes would increase as the state and federal government will be contributing more to damage recovery and subsidies. Furthermore, the value of some properties will begin to increase as less people will be looking for beachfront homes, and instead seeking homes more inland. The major cause of the impacts to real estate is the rising sea levels due to climate change. Rising sea levels are causing areas to be flooded, erosion, and other damaging effects. Additionally, climate change has caused the more frequent occurrence of tropical storms and hurricanes over the last few years that have also affected the value of homes.
    Having an insight into direct effects and impacts of climate change demonstrates the realness and importance of the issue. The climate is changing and not in a good way. It is crucial for individuals to become more aware of the issue as one day it could possibly affect them as well. Also, becoming informed and developing ways to combat climate change can potentially decrease the damage of the effects. Therefore, by making projections and predictions about future effects, as well as analyzing current impacts of climate change, individuals will be able to gain a better understanding of how to deal with the issue. Ultimately, the time is now for people to begin considering the true effects and impacts of climate change and begin making changes.

  26. Global warming is an issue that affects a variety of different issues, but home property value is not one that many expected to hear. This is shown through the fact that 80% of the property owners in NYC who have experienced flood damage since the maps were last updated in 1983 didn’t have flood insurance. When the chances for natural disasters go up, insurance goes up as well. Climate change could very well raise your insurance premiums and property taxes. Obviously, the demand for homes near the water will fall. Rising sea levels increase the chance that those homes on the waterfront will be flooded. In NJ, the demand could fall up to 34%. The increased chance of flooding will increase insurance premiums. Areas that FEMA considered safe from such disasters are now being considered risky. When flooding occurs, many residents move away. This creates a smaller tax base and therefore raises property taxes. Demand for property not threatened by climate change, such as a home that is more inland, will likely increase.

    Personally, I have noticed the effects of climate change in the last few years. In addition to the seemingly random weather that we’ve had lately, there is no doubt that it has been getting warmer overall. The chilly winds of fall are starting to come later and later. Almost into November, I find myself wearing shorts and a t-shirt on some days and bundling up in a jacket on others.

  27. Climate change has been affecting people and their homes. In Oregon and Northern California, there are wildfires occurring and for most of the times, climate change starts these wildfires. When I came across this article, I was very confused because I thought these wildfires destroyed houses and left families without a home. Because of this, I thought home values would decrease in those areas. However, one section of the article states, “Increased property values for some homeowners”. After reading this section, I realized why property values would increase. Because houses near the waterfront are less in demand, the houses that are not near waterfronts, are highly demanded. Especially in Florida and states down in the southeast region, there are hurricanes and natural disasters constantly happening. Personally, because of these constant natural disasters, I would never buy a house because if I did buy a house and it got destroyed, I would lose a lot of money. Another topic that shocked me was how the “cheaper” houses were still expensive, due to taxes. When a waterfront house is not in demand because consumers are worried about climate change ruining the house, insurance companies charge at a way higher rate in order to protect these houses. At the same time, brokers are getting more rich from these houses being less in demand, because there are still people who buy the houses for cheaper now. The article states that brokers in Florida are making more money and are wealthier because these houses are cheaper than normal. This is very interesting because, once again, Florida has the most hurricanes and natural disasters, yet the houses are still getting sold for cheaper. All in all, I realized that although demand is low for waterfront houses, people are still buying these houses. Although the waterfront houses are considered to be less in value, other taxes, such as insurance premiums, make these houses the same value as they were. With climate change increasing and natural disasters occurring more, I expected houses and jobs to diminish, but the opposite is happening, as more houses are being sold and brokers are making more money than ever.

  28. We are already seeing the disastrous impacts of man-made climate change, between the increasingly volatile weather events all over the country and the wildfires on the west coast. This article, however, focuses on the near-term effects of climate change on the east coast. The east coast of the United States, from New England all the way down to the Florida panhandle, will be plagued by rampant flooding. With this flooding comes all sort of humanitarian and economic issues.
    Foremost, it is important to consider that an overwhelming amount of minorities live close to the coast compared to the middle of the country. Boston, New York City, Atlantic City, Washington D.C., Virginia Beach, Charleston, Savannah and Miami are just some of the major cities that would be underwater due to coastal flooding from climate change. All of these metropolitan centers are home to a large portion of America’s black and Hispanic populations.

    Furthermore, there are several economic consequences if the east coast experiences catastrophic flooding. Though the article discusses increased demand for new homes farther from the coast, it fails to adequately address the fact that demand for coastal homes will eventually be zero. How are people supposed to sell their homes, even just 10-20 years down the line, if no one wants to buy them? I would predict that the United States government will need to step in and use eminent domain to give people adequate compensation for their property. They could potentially hold on for the land even if it’s underwater and repurpose it for environmental restoration.

    Even if major environmental reforms are passed, it will take the development of carbon negative technology to effectively reduce the effects of climate change that we’re currently seeing. Such technology is decades from being effectively developed, unless the market makes a major correction and diverts its resources toward combatting climate change. The only way to effectively achieve this is by government action to incentivize green energy and conservationism.

  29. Climate Change awareness is very important. Many people choose to ignore the problem of rising CO2 levels which result in a higher sea level year after year. People tend to think that it won’t affect them, and that if it will the effect will be insignificant. This is very far from the truth, as climate change will affect everybody. Companies who produce the most CO2 emissions that lead to climate change simply will NOT stop. It would make no sense for them, as they would lose hundreds of millions of dollars in revenue for their company and therefore for global GDP. From a simply economic standpoint, climate change activism is a loss. However, this kind of thinking is going to run the Earth into destruction. We do not have unlimited resources on this planet and the overabundance of pollution is destroying what we do have. We need to come up with solutions for rising CO2 levels, as most of climate change or ‘global warming’ is in response to these levels, which have raised considerably over the last 100 years. There is no obvious solution, and the situation with CO2 emissions continues to get scarier each day. I hope that there will be some kind of legislation that attempts to FIX climate change, rather than laws passed that only RESPOND to climate change. Laws that attempt to mitigate the problem of climate change are few and far between, and only serve to slow down rising CO2 levels. We need to develop some kind of solution that actively lowers CO2 levels before it is entirely too late for our shared Earth.

  30. I never knew the climate and they way its changes had a great effect on the value of peoples homes. When it comes to waterfront homes, it makes a lot of sense that they are likely to have less demand since their right in front of the beach. This being if their were to ever be a hurricane then your house would be the first to be completely flooded and damaged. Its also very dangerous for the people living in these types of house since its like to put your life in danger if your not prepared and whatnot. As far as the higher insurance rates, I think if counties just keep up with maintenance of the rivers and water systems then when when extreme weather systems drop in they won’t to as much damage to the community. However, counties are not taking care of this problem and residents are having pay that price because flood insurance rates keep going up. If the county to better care of its rivers they could keep these insurance rates lower for the residents living in nearby communities. Everyone in the community as a whole needs to play their part in learning how to efficiently adapt to changing climates and weather patterns. This only works when our leaders put good polices in place for people to follow. This can keep taxes and insurance low and home value will remain constant or even grow.

  31. This article was surprising to me, not because of climate change, but the effects that it has on things such as housing. What was not surprising to me in the article, was that there was is a decline in demand for waterfront houses. For obvious reason, if sea levels continue to rise, waterfront houses would be at risk of being flooded, water damage, or even destroyed in certain areas. Using basic supply and demand, if the demand for these types of houses are low, these coastal areas would also see a decrease in population, as people would not want stay in these areas, they would also see a rise in property which also makes sense. It makes sense because since there are obviously going to still be taxes in these areas where the population has decreased, to make up for that loss in population you would have to increase the taxes. I was extremely shocked by the 2017 study from Ohio State University estimated that due to excessive algae, a result of warmer weather, Ohio homeowners who live near Buckeye Lake and Grand Lake saw their combined property values decrease by $152 million from 2009 to 2015. This was insane to me that the prices decreased so much. $152million divided by those seven years is about a $22 million dollar decrease a year. What shocked me the most was that this was in Ohio, and it is scary that this happened in Ohio, so what will happen in places that are mainly coastal, such as Florida. Lastly, I never thought of secondary vacation spots, and how they would be affected. The article uses the example of Miami and Orlando, and says that Orlando has seen an increase in property value as more people will be looking to go there to buy a vacation home rather than Miami, due to the rising sea level concerns. All in all, this article was fascinating to see how climate change has implemented itself in our lives, and we cannot bypass this issue, we must take it head on.

  32. I see climate change in the news all the time and the loss of property value had never crossed my mind. It is incredibly interesting when I think about it because it is so real. Eventually, Manhattan will be under water. The Verge states, “Sea level rise due to climate change has long been a cause of concern for New York City. According to the Lower Manhattan Coastal Resilience survey, released today, 37 percent of lower Manhattan will be at the risk for storm surges by 2050.” Considering lower Manhattan is the central borough for business, I wonder if companies will look to relocate to another location, or just move to a virtual format. In 2020, we have seen many companies go completely online due to COVID-19 and considering they are not supposed to be affected by climate change for another 30 years, I am sure there will be vast advancements in technology. Looking at how far we have come within the last 30 years, imagine how far we can go in another 30. I could definitely see the trend for the less demand in waterfront homes. No one wants to spend money on a more expensive home just to have it flooded. However, the amount of deprecation that has occurred is crazy and this number is only going to go up. The tax rise is really alarming because I think there are actions that could be taken to prevent the continuing climate change and therefore lower the probability of rising water levels. In my opinion, the tax raise seems like they know it is inevitable and they are not going to do anything about the issue, just tax the residents. The homeowners who do not live in these waterfront homes will naturally see an increase in their property value. If nothing changes in regard to our current climate, people will eventually have to move out of where they live because the water levels completely engulf their homes, or they will not be able to afford the insurance or taxes. Hopefully, the housing market can keep up with the demand of all the new possible buyers. All in all, hopefully there are actually changes in our greenhouse gas usage and other factors that affect our climate are taken care of so we do not have to worry about this in the future.

    Verge- https://www.theverge.com/2019/3/14/18265833/new-york-city-climate-change-sea-level-rise-bill-de-blasio-development

  33. Climate change is my personal second pic of the most dangerous thing to humanity going forward, with the first being the obvious pandemic sweeping the world right now. But besides changing weather patterns and causing a catalyst for more environmental destruction, what I did not count on joining the conversation on this issue was the lowering of house values. In the article by US News, the described problems to current house values could be summarized as mostly affecting those who are close to sources of water, like lakes and the ocean. In what may be the most startling fact of the article, the author claims that these types of properties are going to lower dramatically in price due to rising flood potential from climate change. This is relevant o my own experiences, as a while back before COVID-19 shut down the world, I went on vacation to North Carolina with my family. We rented a beach house to enjoy the water and sun common in the area. This was an exceptionally fun trip, but what I remembered most that struck me as odd was a conversation with some locals about how the water levels have started to undergo a noticeable increase inward towards the houses. I only remembered this after we left, but I was confused by this statement at the time. Now, I realize that the locals were referring to how the climate changing at such an abnormal rate meant that the houses they owned would start to have less value. No one would want to rent a beach house with no beach and only ocean surrounding you! Back in the article, there was also mentions of higher insurance premiums, and this one I completely understand why this would become an issue. With all the talk of flooding, and the chances of it happening to houses near bodies of water increasing, insurance companies are less willing to take chances with their coverage if the rate at which they have to actually cover people is increasing. So this may lead, if I am to be so bold, to a complete exodus of people from current beach homes, as they would not want to risk all that they own going under the water. What I predict will also happen is a completely new market forming out of the areas that are now the new distance away from the shore to be called beach front. So to summarize what I predict the future of the waterfront property market is poised to look like, it would mean the imminent collapse of the current one and the formation of a new one to combat the rising tides of demand for new homes.

  34. Climate change does not seem to be an issue that will seriously be addressed any time soon, but it should be. There are political differences in the nation that have prevented the government to take action. Dealing with the crisis is a large financial investment, which some people see as too expensive. What ordinary people do not realize, however, is that there is going to be more of a financial strain on homeowners if the issue is not addressed. As sea levels continue to rise rapidly, flood zones are beginning to spread. As flood zones are increasing rapidly, many homes that are located in an area that floods is not listed as one. Unaware of this issue, homeowners are entering higher insurance premiums, higher property taxes, and a lower demand in waterfront homes.

    Oceanfront property values are predicted to drop by 34 percent in New Jersey. In only twelve years, flooding caused homes to depreciate in value by $403.1 million in New England. This is an extremely rapid rate, that should be concerning to waterfront homeowners or potential buyers in the area. By 2045, only 25 years from now, Cape May is expected to see flooding 240 times or more a year. This does not only negatively affect homeowners, but also businesses. Cape May and Atlantic City are typical vacation spots in New Jersey, and the constant flooding will stop them from being so. Businesses will lose a substantial amount of money and there will be a decreased property value for homeowners.

    This information should be spread more publicly. Many people do not acknowledge climate change because it does not directly affect them. The world will go up in a ball of flames long after I die, so why should I care? Giving people with this mindset the information that shows climate change can and will directly affect their finances now may give them the motivation to demand change. Not addressing the issues will bring a depreciation in value and a larger amount of expenses to homeowners. People will not want to willingly lose money and will address the issue.

  35. Climate change’s impact on home prices and values is evident. It has already taken a toll on Land development institutes such as the ULI inc., Edward Walter, the CEO of ULI, in 2018 said that “Understanding and mitigating climate risk is a complex and evolving challenge for real estate investors,” said ULI’s CEO, Edward Walter. “Risks such as the sea-level rise and heat stress will increasingly highlight the vulnerability not only of individual assets and locations, but of entire metropolitan areas.” and “Factoring in climate risk is becoming the new normal for our industry” Real Estate development companies are almost required to Build for resilience, on a portfolio, property, and citywide basis, in order to stay competitive. Heitman, a Chicago-based real estate investment firm with nearly $34 billion in assets under management globally, worked with ULI on the 2018 Climate risk and real estate investment report, and has continuously put heavy resources, both financial and personnel, into measuring and balancing climate risk.
    The huge investment into resilience of buildings and houses is inelastic and inevitably causes the rapid change in valuation of pricing properties. Which explains the increased prices of insurance premiums, mentioned in the article, and the taxation on properties. Additionally, the United States’s climate differs depending on the region, creating another factor and reason for prices revolving properties rise. Researchers have found that climate in countries such as Canada is ubiquitous, and therefore less impacted in terms of climate risk. U.S. on the other hand, the population would likely migrate to states that have less climate risk, and therefore causing another rise in prices of houses.

  36. Climate change is a major issue that we are currently facing, and there are many potential side effects of climate change that some people may not have even considered yet. One of those issues, as the article discusses, is that climate change can have an impact on the value of a house. Less demand for waterfront homes due to storms and rising sea levels could decrease the value of those homes. Additionally, due to increased flooding, insurance premiums will continue to rise. Since increased flooding can also cause residents to move to less flood prone areas, residents who stay in those areas will likely see an increase in taxes. However, some areas more inland may be positively affected by climate change with more people looking to stay further inland. For those who live in coastal areas, this is very concerning news.

    While this article focuses on floods, there are other climate change related problems that could cause a change in property value. For example, the forest fires on the west coast of the U.S. can cause similar changes. Many people know that there have been more wildfires this year than in previous years, and if this trend continues, areas in California could become less desirable places to live. The value of those homes could decrease while insurance premiums and taxes for people living in those areas increase. Climate change is a big issue that many people don’t take seriously. Only the future will be able to tell what other effects climate change has on society.

  37. When one thinks of climate change, they likely heard about it from a politician on TV, an article on social media, perhaps a warning in a science class, etc. I think it’s safe to say assume that’s what most people think about when they think of climate change.

    Residing in the midwest for most of my life, the effects of climate change has always been associated with how irregularly warm or cold our winters have been the past few years. In the summers, I always remember my parents revising the “sea wall” at the lake so as to prevent further erosion and flooding of our front yard. When I was young I never truly understood that the water levels were rising, I just knew every year it seemed like there was less and less of our yard. As I got older I started to make the connection between the two when we would stay at our house in the Florida Keys. A majority of homes are stilted or designed to be several feet above sea level in a different way. In all three cases; “sea wall”, stilts, or other, these measures were taken with rising sea levels and flooding in mind. But what happens when it’s more than that? What happens when stronger hurricanes and tropical storms are introduced?

    The article notes scientists concerns’ for Cape May and AC in New Jersey. Prior to moving here, I would have never understood the significance of either of these places. However, over the summer my friends and I stayed in Cape May for the week. The last few days of our trip were full of rain, rain and more rain. In what seemed like no time, a vast majority of the city was relatively flooded. Being from Northwest Ohio, I had never seen such a thing. With this in mind, in tandem to what the article mentions, it seems as though these scientists concerns’ could possibly be downplaying the reality if our planet continues to warm. Unfortunately for these shore towns, people don’t want to have homes in places that are constantly flooded. For this reason, places like the Florida Keys have seen real estate prices increase greatly. However, New Jersey isn’t the only state at risk of losing a great deal of property value. Several shore towns all up and down the East coast are going to get hit hard; both in property value and the properties themselves.

  38. Climate change is affecting many within the country, like the fires on the west coast or the flooding in locations like New Orleans. If nothing changes for the world as far as climate, then living in certain locations will be harder and less demanded. This can cause an increase in population in other areas causing some cities to become crowded and uncomfortable for some people to live in. Higher insurance and property taxes is something no one will want, ultimately causing some places too expensive to live there anyways. Routinely seeing flooding or fires will evidently cause these things to happen, and increase in everything will have less money in a resident’s pocket and everything around them will become harder to live with. Climate change isn’t just influencing tropical storms, yet the ocean levels which are rising. I likewise think some of these individuals may not know about the environmental change worry here and may not have the adequate comprehension to realize why buying one of these houses may not be the best venture.

  39. Climate change is a great factor in affecting much of our daily lives. One thing it impacts vastly is ones home value. It causes less demand for waterfront homes, higher insurance, high property taxes and so much more. The rising of temperatures and sea levels is having a lasting impact. Climate change is causing the sea levels to be uneven and inconsistent, so when people begin to invest in waterfront homes, they are more cautions and less likely to purchases houses that can potentially end up being damages or an empty lot. It will cause higher insurance because of the changing river and water systems that many states are trying to keep up with and maintain, but with climate change, it costs more. Taxes would therefore be raised in order to improve and maintain the water systems for each county/state. With all these changes are more, it is now important than every that we as not only a country, but the world need to make better changes that can help prevent any further damage to this planet.

  40. Climate change/global warming has been an issue reoccurring for many years but especially in our day and age it is a big problem. The causes of global warming will cause taxes on property and insurance to increase drastically. Homes around the water fronts will start to be Un-bought or damaged due to the uncontrolled global warming. The ecosystem will begin to change in a way that is uncontrollable and unpredictable but will not be a good change. Living areas in the south west will be very harmful to live in with heat and humidity. California fires will start to spread more rapidly. Homes will be damaged, places of living will no longer be livable. Homes where memories are made will be endangered and homes where property taxes will increase our homes that have a less likelihood of being damaged from global warming. But people will run out of land to live on. The world needs to pay attention to global warming and start making choices that are healthier for the environment in order to save the world and make sure fires, heat waves and ice ages will be fixed for the future generations. News have been spreading along the way but many people don’t see a problem in their daily lives on how they approach saving the planet.

  41. 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.

  42. 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.

  43. 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.

  44. 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.

  45. 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.

  46. 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.

  47. 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.

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