Sea level rise is eroding home value, and owners might not even know it - The Washingto... - 0 views
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On a broad scale, the effect is subtle, the studies show. The sea has risen about eight inches since 1900, and the pace is accelerating, with three inches accumulating since 1993, according to a comprehensive federal climate report released last year. Scientists predict the oceans will rise an additional three to seven inches by 2030, and as much as 4.3 feet by 2100.
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By comparing properties that are virtually the same but for their exposure to the seas, researchers at the University of Colorado at Boulder and Pennsylvania State University found that vulnerable homes sold for 6.6 percent less than unexposed homes. The most vulnerable properties — those that stand to be flooded after seas rise by just one foot — were selling at a 14.7 percent discount, according to the study, which is set to be published in the Journal of Financial Economics
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The study found the drop in prices appears to be driven primarily by investors buying multiple properties or second homes. Such buyers tend to be wealthier and better educated than owners who occupy their coastal homes, said Ryan Lewis, an assistant professor of finance at the University of Colorado and a co-author of the study
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beachfront property is not necessarily declining in value. Rather, the studies suggest that more-exposed properties — including properties that have not yet experienced direct flooding — simply are not appreciating as rapidly as their inland neighbors.
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A large part of that rise has come in the last 25 years, said Norm Levine, director of the Lowcountry Hazards Center at the College of Charleston. As a result, roughly 1 percent of buildings in the Charleston area are now seeing annual flooding, Levine said. “Our 50-year estimate is that it will be 15 percent of the inventory of buildings.”
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Owen Tyler, the managing broker of the Cassina Group, a realty company that sells million-dollar-plus historic homes in Charleston, agrees. Home buyers are asking increasingly savvy questions about flooding, Tyler said, “a dramatic change from three years ago or five years ago.
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“I definitely feel like something has changed,” Boineau said when asked about sea level rise and whether flooding in Charleston is getting worse. “And I think that we all have a lot to be concerned about.”