How Global Warming Is Hurting Beach Home Pricing written by: liliank When you mention global warming, a majority of people just understand it as another scientific terminology. To many people, it is just an increase in global temperatures, but scientist sees it as a threat to the very existence of human race. What many do not understand is the impact that it could have in their future. Global warming is a crisis that has been blamed for many catastrophes hitting the world such deadly floods, rains and droughts all over the world. The crisis is also proving to have an enormous impact on other sectors of the economy. One sector that has been suffering silently and could be hit more in future is the real estate.
How Global Warming is Affecting Real Estate (coastal homes)
Global warming has been associated with the rising sea levels, and this is a great concern to real estate developers. From the credible research centers such as Discovery and National Geographic, the ever-increasing global temperatures are shrinking the glaciers and melting the polar caps. As a result, there is an increase in water levels in the seas. Such levels will definitely threaten the survival on the land as the water levels in rises to occupy the dry land starting with beaches. Apparently, it is predicted that if the global warming is not addressed appropriately, half of the United States will be inhabitable due to flooding in next half century. Most of the coastal cities will be submerged, and this is what is informing the current crisis in real estate.
As a matter of fact, dealing with coastal properties are some of the most lucrative deals in real estate. Many people are willing to spend millions of dollars for waterfront properties oblivious of the pending catastrophe. Most buyers don’t believe in global warming and never consider it while purchasing a property. But realtors such as Palmetto Park Realty, Wellington who have a huge stake in Florida Beach properties are a worried lot with such developments. Investing in this area is becoming a tricky affair and might fail to produce good returns as it has been in previous decades. Fewer people will be interested in investing in these properties due to the possible rise in sea levels.
Is Global Warming Hurting Beach Home Pricing?
Yes, it is. The issue of rising sea levels will definitely diffuse demand of waterfront properties. Companies such as Palmetto Park Realty, wellington worries that customer will start shying away from buying Beach properties on learning of the catastrophe on the way. The value of the property will drastically fall as demand falls. The fact that National Geographic estimates that the sea could rise to 6.5 feet by 2100 is a clear indication how bad the condition could be. Such levels will submerge most of the beach homes and many coastal cities.
Rise in insurance rates due to flooding is another problematic aspect of global warming. The rates on beach homes will definitely hit the roof top as the sea level rises thus fueling a drop in property prices. Already, such signs are already showing, and this will significantly hurt the beach home prices. So while investing in beach homes, be very careful of the impending risks associated with global warming.