Climate change has been a hot topic of discussion in recent years, with its impact felt across various sectors, including the real estate market. Coastal properties are particularly vulnerable to the effects of climate change, as rising sea levels, increased storm surges, and more frequent extreme weather events pose significant threats to these areas. One such area that has been affected is Sarasota, FL, a popular coastal city known for its beautiful beaches, warm climate, and thriving real estate market.
Let’s take a closer look at how climate change is impacting the current real estate market conditions for coastal properties across the US.
Impacts of Climate Change on Coastal Properties
1. Financial Hardships
One of the most significant impacts of climate change on coastal properties is the increasing financial hardships property owners face in these areas. For example, finding insurance in coastal areas is becoming increasingly difficult and costly due to the higher risk of damage from flooding and storms.
2. Reduced Desirability of Some Areas
The “red tides” in the Gulf have significantly impacted Florida beaches, causing health hazards and reducing tourism. Red tide is harmful algae bloom caused by land-based sources of pollution. Red tides release toxins into the water and cause respiratory problems, eye irritation, and other health issues. Blooms lead to the death of fish and other marine life, harming the local economy and the environment. Coastal regions that depend on tourism lose millions of dollars because the beaches are becoming less attractive. Furthermore, shellfish-harvesting businesses lose income due to the closure of shellfish beds.
Due to the decreasing appeal of the coastal real estate market, many property owners are struggling to sell their properties while still making profits. Areas that are at higher risk of damaging events lose their appeal, and home prices are decreasing.
3. Risk of Sea-Level Rise
Most coastal property owners are facing this risk. The sea level is projected to increase by up to 6.5 feet by the end of the century. This rise in sea level will increase the risk of flooding and storm surges, significantly impacting property values in coastal areas.
Recent studies have shown that properties at risk of flooding from sea-level rise are already experiencing lower property values and slower sales.
Climate change is significantly impacting the real estate market conditions of coastal properties across the US. The long-term solutions to these problems require a multi-faceted approach that includes investment in mitigation and adaptation measures, increased public education and awareness, and changes in policies and regulations to encourage sustainable development practices. By taking action now, we can help protect our coastal communities and ensure a better future for all.
If you are looking for experts in current real estate market trends, Lone Pine Investment has you covered. With us, you can expect a streamlined process for selling your property, and we will make sure to meet your expectations. Contact us today for more information.