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Floods Now Affecting Where People Live

The Wall Street Journal finds that coastal storms and flooding may be affecting real estate values.
November 6, 2018

The Wall Street Journal recently published an article indicating that coastal storms and flooding may finally be having an effect on where people most want to live. The analysis found home prices along the eastern seaboard are not increasing as much as those inland. Homes on the coast now seem to be a risker investment and more costly when factoring in mitigation costs such as lifting a house to protect it against future flooding. Some coastal counties also are strengthening building codes to prevent further losses.

In a growing number of coastal communities, homes near the sea are appreciating more slowly than those inland. The value of homes in Somerset County, New Jersey flood zones at a high risk of flooding had risen 10.5 percent from 2012 to 2017, while homes in the county not facing that risk rose 14.4 percent.

In Ocean County, N.J., a middle-class, coastal county home to multilevel beachfront houses and small summer bungalows, the value of high-risk flood-zone homes rose 1% between 2012 and the end of last year. The value of inland homes rose 26%.

Up and down the eastern seaboard, many home prices near water’s edge aren’t doing as well as homes inland in the same county, a Journal examination found.

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