{"id":773,"date":"2019-11-01T14:01:18","date_gmt":"2019-11-01T18:01:18","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=773"},"modified":"2024-04-25T23:20:32","modified_gmt":"2024-04-26T03:20:32","slug":"new-risks-for-property-owners-economic-and-physical-effects-of-climate-change","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/new-risks-for-property-owners-economic-and-physical-effects-of-climate-change\/","title":{"rendered":"New Risks for Property Owners: Economic and Physical Effects of Climate Change"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/climate-1024x684.jpg\" alt=\"Image of a house with ocean waves splashing under it meant to represent rising sea levels caused by climate changing. Photo by Clint Patterson via Unsplash\" class=\"wp-image-774\" width=\"512\" height=\"342\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/climate-1024x684.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/climate-300x200.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/climate-768x513.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/11\/climate.jpg 1349w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure><\/div>\n\n\n\n<p>This story, alas, is\u00a0unfolding. Physical signs of a heating world\u00a0and its shifting weather patterns\u00a0<a href=\"https:\/\/www.thelancet.com\/journals\/lancet\/article\/PIIS0140-6736(06)68933-2\/fulltext\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">appear<\/a>\u00a0in\u00a0tropical storms and in sea level rise, in heat waves, droughts, and\u00a0wildfires. The economic and physical impacts of climate change are\u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.washingtonpost.com\/realestate\/factoring-the-effects-of-climate-change-into-real-estate-investments\/2019\/03\/07\/aa60f186-3f7f-11e9-a0d3-1210e58a94cf_story.html\" target=\"_blank\">making\u00a0their mark on real estate<\/a>.\u00a0<\/p>\n\n\n\n<p>Affected\u00a0cities have <a href=\"https:\/\/www.app.com\/story\/news\/local\/land-environment\/2019\/08\/23\/nj-among-top-states-nation-climate-change\/2063691001\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">already paid\u00a0heavy costs<\/a>\u00a0in repairs and reconstruction, insurance premiums, and loss of trade and tourism. Real estate markets are\u00a0seeing severe weather events steadily\u00a0chip\u00a0away at\u00a0property values. Public initiatives to mitigate\u00a0risks will\u00a0increase\u00a0taxes, code compliance burdens, and financing costs.<\/p>\n\n\n\n<p>In other words, the risks go well beyond destructive incidents\u00a0from specific disasters. They include\u00a0higher capital and maintenance costs related to fire, water, and weather damage on properties over time. To <a href=\"https:\/\/www.cnbc.com\/2019\/04\/08\/climate-change-will-crush-real-estate-values-for-unprepared-investors-report.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">anticipate the risk<\/a>\u00a0of climate-related damage, analysts are mapping properties\u2014feeding\u00a0site-specific data into geophysical, hydrological, and\u00a0economic models.\u00a0<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Social\nImpact: &#8220;Climate Gentrification&#8221;<\/h2>\n\n\n\n<p>In the coming four decades, beachfront Miami will experience something\u00a0between\u00a014 and\u00a034 inches of sea level rise. The city is coming to grips with a new housing dynamic:\u00a0<a href=\"http:\/\/miamifl.iqm2.com\/Citizens\/Detail_LegiFile.aspx?ID=4929&amp;highlightTerms=%22climate%20gentrification%22\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">climate gentrification<\/a>. Affluent buyers who would have preferred beachfront property a generation ago are now scoping out higher ground.\u00a0<\/p>\n\n\n\n<p>Residents of those higher spots\u00a0<a href=\"https:\/\/www.miamiherald.com\/news\/local\/environment\/article222547640.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">face pressure<\/a>\u00a0from\u00a0developers anxious to exploit the rising property values on higher land. Consider Miami&#8217;s Little Haiti neighborhood. In just four years, it\u00a0experienced more than a thousand-fold rise in owner-occupied properties\u00a0valued above $150,000, as observed by researchers at\u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/metropolitan.fiu.edu\/research\/periodic-publications\/neigborhood-changes\/little-haiti-00-14-4.pdf\" target=\"_blank\">Neighborhood Changes<\/a>,\u00a0a project at Florida International University.<\/p>\n\n\n\n<p>Meanwhile,\nin some beachfront areas, the costs of rebuilding and maintenance are so high\nthat only the very wealthy can, so far, remain.<\/p>\n\n\n\n<p>To support\nthe less affluent communities&nbsp;trying to survive the changes, Miami is\nmandating&nbsp;more workforce housing in\nhigh-elevation&nbsp;neighborhoods.&nbsp;Advocates are also interested in&nbsp;<a href=\"https:\/\/www.deeds.com\/articles\/the-land-trust-approach-to-affordable-housing\/\">community\nland trusts<\/a>, in which a nonprofit buys up land to lease it affordably to\nlocal residents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who\nOwns the Land Claimed by&nbsp;Climate?<\/h2>\n\n\n\n<p>Every hour, an area the size of a football field sinks under water in Louisiana, reports <em><a href=\"https:\/\/www.bloomberg.com\/news\/features\/2018-04-25\/fight-grows-over-who-owns-real-estate-drowned-by-climate-change\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Bloomberg News<\/a><\/em>. Under Louisiana state law, navigable waterways that Louisiana held at the time it became a state, in 1812, are public property.<\/p>\n\n\n\n<p>But what\nabout newly navigable properties&nbsp;with chains of title dating back\ngenerations?&nbsp;Some say the state should&nbsp;claim these\nnew&nbsp;waterways.&nbsp;<\/p>\n\n\n\n<p>At what point do the changes related to global heating justify\u00a0government takings of formerly\u00a0private property? The Louisiana House of Representatives recently considered\u00a0passing a law <a href=\"https:\/\/www.nola.com\/news\/environment\/article_816f57f7-169b-5a0f-8fb8-73b0c69399d6.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">deeming Louisiana&#8217;s tidal waters\u00a0public property<\/a>. Opposed by landowners, the bill died.\u00a0<\/p>\n\n\n\n<p>The stakes,\nof course, are enormous. They implicate&nbsp;trillions of dollars\nin&nbsp;coastal industry and real estate. Now, these questions are being taken\nup by the&nbsp;courts.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Expect\nErosion\u2014of&nbsp;the Public Trust Doctrine?<\/h2>\n\n\n\n<p>Under the\ncenturies-old&nbsp;<em>public\ntrust doctrine,<\/em>&nbsp;the governments in&nbsp;most states already\ndo&nbsp;own&nbsp;coastal property&nbsp;below the average high-tide line.<\/p>\n\n\n\n<p>What if the\nhigh-tide line moves? If this occurs in a single incident, such as a\ndestructive storm,&nbsp;the private owner retains title, and has the burden of\nrecovering the property.<\/p>\n\n\n\n<p>On the other\nhand, in the case of a gradual shift in the high-tide mark, the boundary of\npublicly&nbsp;owned&nbsp;land shifts, too. Governments do not need to pay the\nowner for these natural changes.&nbsp;But sea level changes driven by a warming\natmosphere pose&nbsp;a new test for&nbsp;an old doctrine.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Homeowners\nPush Back<\/h2>\n\n\n\n<p>Homeowners\nare anxious. They&#8217;re looking for law and policy that has yet to be created.\nMiramar Beach, Florida and Nags Head, North&nbsp;Carolina offer additional\ncases in point.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Standoff\nat Miramar Beach<\/h3>\n\n\n\n<p>Florida owns\nland in&nbsp;Walton County&nbsp;below the Miramar Beach high-tide line.\nHistorically, the public has been free to wander across drier sands that are\ntitled to&nbsp;private owners. But after Hurricane Dennis in\n2005,&nbsp;beachfront homeowners started pushing back against sunbathers.<\/p>\n\n\n\n<p>Creating an\nordinance&nbsp;expressly requiring&nbsp;homeowners to permit public access\nto&nbsp;the beach on their properties, the county reinstated long-held but\nunwritten rules by which private title holders shared the beach\u2014and\nthen,&nbsp;Miramar Beach homeowners sued to stop the ordinance. Florida\nsenators who side with the property owners introduced a&nbsp;bill to\nforce&nbsp;local officials to get a judge&#8217;s approval to allow public access\nto&nbsp;private property&nbsp;above high-tide lines.<\/p>\n\n\n\n<p>It&#8217;s a\nlosing legal battle for property rights when&nbsp;the high tide keeps moving\nin.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Showdown\nat Nags Head<\/h3>\n\n\n\n<p>Nags Head\nresidents sued North Carolina in an area where the beachfront erodes at the\nrate of some&nbsp;6 feet each&nbsp;year. State setbacks ban&nbsp;new\nconstruction there.&nbsp;The faster the erosion, the further inland\nit&nbsp;gradually pushes back&nbsp;the dune line\u2014eroding&nbsp;property rights\non its way. Homes were condemned and torn down, defying&nbsp;lawsuits.&nbsp;Nags\nHead paid one&nbsp;group of homeowners a $1.5 million&nbsp;settlement.&nbsp;<\/p>\n\n\n\n<p>Then\ncame&nbsp;a new twist in a case pitting&nbsp;private property\nrights&nbsp;against state lawmakers trying to protect&nbsp;coastal environments\nand reduce&nbsp;the&nbsp;costs and risks connected with rising sea\nlevels.&nbsp;Homeowners Michael and Cathy Zito applied for permits to rebuild\ntheir&nbsp;fire-damaged vacation home on the same stretch of beach.&nbsp;<\/p>\n\n\n\n<p>While the Zitos continued to pay their mortgage and taxes, state and local governments refused to issue permits. Any replacement structure built on the same site as the Zitos&#8217;\u00a0original house, built in 1982,\u00a0<a href=\"https:\/\/www.coastalreview.org\/2019\/07\/crc-to-discuss-challenge-to-setback-rules\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">would violate North Carolina\u00a0setback rules<\/a>.\u00a0The Zitos have been waging a legal battle\u00a0over their\u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.pilotonline.com\/news\/environment\/article_95825876-5c59-11e9-93fb-d7c55d39351d.html\" target=\"_blank\">rights to the eroded beachfront<\/a>,\u00a0claiming\u00a0a right to &#8220;just compensation&#8221; under the federal and state constitutions&#8217;\u00a0takings clauses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Unprecedented\nQuestions of Property Rights and Public&nbsp;Policy<\/h2>\n\n\n\n<p>Since\nHurricane Katrina hit the area, beachfront homeowners of Dauphin Island,\nAlabama&nbsp;hold titles to&nbsp;submerged buildings. They haven&#8217;t stopped\npaying their property taxes, though. The&nbsp;U.S. Army Corps of Engineers has\nalready rebuilt parts of the beach. They&#8217;re hoping it will&nbsp;rebuild theirs.\nAnd yet, where built&nbsp;land is reclaimed from the gulf,\nare&nbsp;properties&nbsp;restored&nbsp;to private ownership? Paying taxes,\nwithout more, does not guarantee the answer.<\/p>\n\n\n\n<p><em>Bloomberg\nNews<\/em>\nquotes Patti Powell, who works for&nbsp;the state&#8217;s Department of Conservation\nand Natural Resources:&nbsp;\u201cI\u2019m not sure that we have any precedent.&#8221;<\/p>\n\n\n\n<p>The question\nfor real property law in the next generation is this. When homes go under\nwater, what does a real estate title mean? Will governments have the authority,\nthrough <a href=\"https:\/\/www.deeds.com\/articles\/eminent-domain-an-eminence-front\/\">eminent\ndomain<\/a>,&nbsp;to remove&nbsp;homes&nbsp;for the public good? Will\ngovernments&nbsp;offer &#8220;just compensation&#8221;\u2014or object that\nthe&nbsp;land was reclaimed not by the government but by nature?<\/p>\n\n\n\n<p>Governments could\u00a0keep buying owners out, until there no public funds left to do so. It&#8217;s unlikely law and policy will demand that. Meanwhile, <a href=\"https:\/\/www.insurance.wa.gov\/how-climate-change-affects-your-insurance\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">watch<\/a> for insurance to become pricier, and to cover less.\u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.alta.org\/advocacy\/issue.cfm?Flood-Insurance\" target=\"_blank\">Flood insurance<\/a>, as noted by the American Land Title Association, is missing from\u00a0standard homeowners&#8217; insurance. This gap will be noticed throughout much\u00a0of the country in coming years.\u00a0Today, about 60% of homebuyers would\u00a0pay more for\u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/magazine.realtor\/daily-news\/2019\/10\/22\/survey-climate-change-isn-t-affecting-owners-preferences\" target=\"_blank\">insurance that deals with\u00a0climate change risks,<\/a> according to a ValuePenguin survey. People in Arkansas, Louisiana, Oklahoma, and Texas\u00a0are the most likely to take into account\u00a0potential climate change risks when buying a home.<\/p>\n\n\n\n<p><em>Deeds.com<\/em>\u00a0will be watching this and other climate-related property issues. Stay tuned.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Supporting References:<br>\nWashington Post<br>\nhttps:\/\/www.washingtonpost.com\/realestate\/factoring-the-effects-of-climate-change-into-real-estate-investments\/2019\/03\/07\/aa60f186-3f7f-11e9-a0d3-1210e58a94cf_story.html<br>\nMiami Herald<br>\nhttps:\/\/www.miamiherald.com\/news\/local\/environment\/article222547640.html<br>\nNOLA.com<br>\nhttps:\/\/www.nola.com\/news\/environment\/article_816f57f7-169b-5a0f-8fb8-73b0c69399d6.html<br>\nABC News 13 (WVIC):<br>\nhttps:\/\/www.13newsnow.com\/article\/news\/local\/north-carolina\/couple-sues-over-rebuild-permit-denial-for-burned-beach-home\/291-893673ec-d5eb-4dea-b477-f4ec88ba2e26<br>\nCoastal Review Online<br>\nhttps:\/\/www.coastalreview.org\/2019\/07\/crc-to-discuss-challenge-to-setback-rules\/<br>\nWashington State Office of the Insurance Commissioner<br>\nhttps:\/\/www.insurance.wa.gov\/how-climate-change-affects-your-insurance<br>\nNPR<br>\nhttps:\/\/www.npr.org\/2018\/09\/20\/648700837\/price-tag-of-natural-disasters-grows<br>\nBloomberg News<br>\nhttps:\/\/www.bloomberg.com\/news\/features\/2018-04-25\/fight-grows-over-who-owns-real-estate-drowned-by-climate-change<br>\nThe Virginian-Pilot<br>\nhttps:\/\/www.pilotonline.com\/news\/environment\/article_95825876-5c59-11e9-93fb-d7c55d39351d.html<br>\nRealtor Magazine<br>\nhttps:\/\/magazine.realtor\/daily-news\/2019\/10\/22\/survey-climate-change-isn-t-affecting-owners-preferences<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo by Clint Patterson via Unsplash: https:\/\/unsplash.com\/photos\/SYpWSInV_U8<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This story, alas, is\u00a0unfolding. Physical signs of a heating world\u00a0and its shifting weather patterns\u00a0appear\u00a0in\u00a0tropical storms and in sea level rise, in heat waves, droughts, and\u00a0wildfires. The economic and physical impacts of climate change are\u00a0making\u00a0their mark on real estate.\u00a0 Affected\u00a0cities have already paid\u00a0heavy costs\u00a0in repairs and reconstruction, insurance premiums, and loss of trade and tourism. Real [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-773","post","type-post","status-publish","format-standard","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Risks for Property Owners: Economic and Physical Effects of Climate Change - Deeds.com<\/title>\n<meta name=\"description\" content=\"The economic and physical impacts of climate change are making their mark on real estate.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.deeds.com\/articles\/new-risks-for-property-owners-economic-and-physical-effects-of-climate-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Risks for Property Owners: Economic and Physical Effects of Climate Change - 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