WASHINGTON POST • February 16, 2023
The nation’s real estate market has yet to fully account for the increasing threats to millions of homes from rising seas, stronger storms and torrential downpours, according to new research. Across the U.S., properties in vulnerable areas are overvalued by $121-237 billion. Municipal governments that rely heavily on property taxes could also face huge budget shortfalls as flood-prone homes lose value. A significant portion of overvalued properties are concentrated in communities along the Atlantic and Gulf coasts that have heightened exposure to hurricanes and rising seas, lax flood-disclosure laws and a high proportion of residents who do not view climate change as an imminent threat. But elsewhere in the country, the true risks also don’t match the current reality. For instance, areas of New England also stand to lose significant value in the coming decades.