Rising sea levels are taking down housing values

The Extinction Chronicles

Whether or not you believe in global warming, if you’re buying a home near the ocean, pay attention to the expected sea level rise—and keep a close eye on those investing alongside you. Some prospective buyers are even insisting that shore properties include an “SLR discount.”

Houses near the beach that are exposed to sea level rise (SLR) sell for 7 percent less than equivalent, but more protected, properties that are just as close to the water, a forthcoming study in the Journal of Financial Economics finds. The study also said that the discount is significant and driven by sophisticated buyers and communities worried about the long-term effect of global warming. A home that might have sold for $400,000 when the study began in 2007 could now be worth $28,000 less. And this discount could continue to rise…

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