Luxury Housing Markets Are Losing Value Fast Due to Climate Change
A home listed in Nantucket, Mass., for $2 million sold for just $600,000 earlier this year due to sea level rise in the region
June 18, 2024
Image: Newport Coast Media / stock.adobe.com
Cities, such as Dana Point, Calif., are losing value due to rising sea levels, erosion, and flooding.
Markets once sought after due to their coastal environments are now being reevaluated as climate change intensifies. According to CNBC, sea level rise, flooding, and erosion are changing perspectives about luxury coastal housing markets such as Dana Point, Calif., and Nantucket, Mass. Along the East and Gulf Coasts, 33 ZIP codes have a median home value of at least $1 million, and in these areas, a combined 77,005 properties are at risk of flooding.
Various risk models have shown myriad projections for falling real estate values, but the effects of climate change are already hitting the market — and at a faster pace than most expected. A Nantucket home listed last summer for just over $2 million sold early this year for just $600,000.
