A ground-breaking study conducted by non-profit First Street Foundation
and researchers at the University of Columbia found that $7.4 billion has been lost in home values due to flooding across five costal states from 2005-2017.
Real estate markets have started reacting to the reality of increased flood risks by downgrading prices for vulnerable homes. Projections and forecasts that at one time seemed far off now are being felt by homeowners and financial markets. This was the first time an academic paper demonstrated that sea level rise was directly related to a decrease in costal home values by showing how nearby flooding played a part in that devaluation.
Buyers that are purchasing second homes or investing through home ownership are now taking that discount rate into account. Primary homeowners
in threatened properties rely on these depreciating home value for equity that will carry them into retirement. Researchers fear that these homeowners
will be at the biggest financial risk when the full effect of flooding will hit these communities.