A new, first-of-its-kind peer-reviewed study from Harvard University provides proof of "climate gentrification" in real estate, that higher elevation land and homes in Miami with lower flood risk will become more valuable over time.
The study looked at home values of more than 100,000 single-family homes in Miami since 1973. Report co-author Jesse Keenan says that homebuyers and real estate speculators and investors, "Will densify in these high elevation areas," adding, "You can argue with climate gentrification and whether it's a good theory or not, but you can't argue with the science and the economics behind that proposition that this is a signal." CNBC reports that the city of Miami is investing upwards of $200 million into disaster resilience projects including infrastructure updates and installing pump stations.
A modern glass home sits on the edge of the water in Miami Beach. The ground-level master suite has a soaking tub that looks out to the ocean, and the bedroom's glass doors allow the owner to roll out of the sheets and onto the yacht. It is listed for sale at $25 million. Another Miami home sits on a garbage-strewn street in Little Haiti, about five miles inland. Its owner can walk out the front door and see a dead chicken in the street. It is listed for sale at $559,000, but some experts claim it is a better investment than $25 million mansion.
