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Fewer Americans are scooping up coastal real-estate these days — and the risk of rising sea levels appears to be driving the trend.
Researchers at the University of Pennsylvania studied the dynamics of coastal real-estate markets in Florida, where as many as one million homes are expected to be at risk of chronic flooding due to rising sea levels by the year 2100. Comparing homes in areas with more exposure to rising sea levels with those that are less at risk, the study found that today’s home buyers have far less interest in the more at-risk properties.
Before 2013, transaction volumes across these two sections of the market moved in tandem. But since then, they have diverged. The number of homes sold in the markets with the highest risk of “chronic inundation,” as some call it, fell between 16% and 20% from 2013 to