From CNBC (Diane Olick):
A new Harvard study claims climate change is altering home values both on the coast and inland, coining the term, “climate gentrification.” “Higher elevation properties are essentially worth more now, and increasingly will be worth more in the future,” according to Harvard’s Jesse Keenan. Universities, climate research groups, and the National Oceanic and Atmospheric Administration have made dire predictions of sea-level rise in Miami.
A modern glass home sits on the edge of the water in Miami Beach. The ground-level master suite has a soaking tub that looks out to the ocean, and the bedroom’s glass doors allow the owner to roll out of the sheets and onto the yacht. It is listed for sale at $25 million.
Another Miami home sits on a garbage-strewn street in Little Haiti, about five miles inland. Its owner can walk out the front door and see a dead chicken in the street. It is listed for sale at $559,000, but some experts claim it is a better investment than $25 million mansion.
The mansion, while highly desirable and exquisitely appointed, is paradise at a price, because rising tides and increasingly extreme storms may already be lowering its value. On the other hand, the home in Little Haiti, which sits on high ground with little risk of flooding, is appreciating at a fast clip. It has nearly doubled in value in just the past two years, according to Zillow…
The study tracked the values of more than 100,000 single-family homes across Miami going back 45 years…
“What we found is that the higher elevation properties are essentially worth more now, and increasingly will be worth more in the future,” Keenan said. “Populations, including speculative real estate investment will densify in these high elevation areas.”
Universities, climate research groups and the National Oceanic and Atmospheric Administration have made dire predictions about sea-level rise in Miami — the ocean overtaking vast swaths of real estate over the coming decades. So-called “nuisance” flooding, when king tides come in on sunny days, is already common in some neighborhoods.