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New analysis by nonprofit Union of Concerned Scientists finds that by 2045, about $135 billion worth of U.S. real estate will be under threat from flood damage, including 300,000 homes and commercial properties.
Using Zillow data to measure flood risk by ZIP code in U.S. housing markets, the report concluded that the nation's real estate markets are at risk of "sustained and widespread damage," due to rising sea levels, writes Patrick Sisson for Curbed. Financial markets do not currently account for this risk, and property values in coastal markets do not yet include this potential damage, meaning that the country remains unprepared for the "significant financial loss set to upend coastal areas," he adds.
This report is predicated on current “business-as-usual” climate change models and temperature changes. To avoid the worst-case scenarios outlines in “Underwater,” a forceful, coordinated response is needed. Homeowners and investors need better information, especially risk analysis reflecting the coming risk of rising waters. The maps used for the National Flood Insurance Program only show current risk; updating them to reflect, for instance, the risk that would increase during the course of a 30-year mortgage would lead to better long-term investment decisions.
