Coastal erosion a factor in US property purchases

We reported earlier this month that some Spanish property investors are increasingly worried about rising sea levels and coastal erosion and are therefore choosing to purchase properties inland rather than on the coast, and it appears that this is a trend which is emerging worldwide.

Coastal property prices in the US are starting to suffer – and it isn’t just because of the global credit crunch.

Top market resorts such as the Hamptons and Palm Beach are seeing a slowdown in property price growth. In places such as Florida, where beach communities are very popular, prices are sliding badly with average property prices dropping around 17 percent, with condo prices falling by about 24 percent.

America has been hit hard by credit crunch fears and this is a factor in the sliding house prices. However, more and more buyers are becoming aware of climate change, natural disasters and coastal erosion and are choosing their properties carefully to ensure their purchase will last for generations to come.

With increasing news coverage of natural disasters such as tsunamis and hurricanes, it is only natural that people are looking to ensure their property is protected against Mother Nature. Beach community properties tend to be looked upon as a multi-generational purchase – a property that can be handed down from generation to generation – therefore location is becoming ever more crucial.

In Florida, erosion caused by hurricanes costs millions of dollars to shore up the beaches. Around 60 percent of the coastline – around 485 miles – is eroding and with many properties, there is just the beach between them and the sea.

The Eastern coastline is the most at risk to coastal erosion. Recent reports show that the coast loses around two to three foot to coastal erosion in comparison to the rest of the country which loses about a foot.

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  1. Deena | Jun 25, 2011 | Reply

    That addersses several of my concerns actually.

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