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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Is it true that coastal real-estate prices have seen no impact from the threat of rising sea levels?

By Mikayla Campbell
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NO

Explaining a decline in home-sale volumes and relative sale prices in some Florida markets, a recent study by the National Bureau of Economic research suggests that “prospective buyers have become more pessimistic about climate change risk than prospective sellers.” The study cites worst-case projections for sea level rise as one explanation for buyers' increasing uncertainty about purchasing a home in a flood zone. It estimates relative prices have declined 5% over the last two years.

A study about the effects of Hurricane Sandy on New York real estate prices found a "price penalty" even for flood-zone homes that weren't damaged by the storm. In 2017 the penalty was 8%.

First Street Foundation, which quantifies the impacts of rising sea levels, estimates that over $403 million in relative home values was “missed out on” between 2005–2017 in four New England states.

This fact brief is responsive to conversations such as this one.
Sources
National Bureau of Economic Research: Housing markets, mortgage lending and sea level rise
Science Direct: Journal of Urban Economics—Rising sea levels and sinking property values
City University of New York: Journal of Urban Economics—Rising sea levels and sinking property values (full text)
Medium: First Street Foundation—Flood iQ adds New England states
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.