Sea Level Rise Takes Shine Off Waterfront Homes
By Aaron Applegate, The Virginian-Pilot | |
McClatchy-Tribune Information Services |
Josh, 30, wanted to live in
"My concern was, it might not be a wise place to invest in general," she said.
Her worry was grounded in her work. A consultant at the
Her determination to avoid living near the water surprised her a little. She grew up on a lake in
"I absolutely thought my dream home would be on the water," she said. "But knowing what I now know, my entire perception has changed. I think everyone in
The newlyweds forged a compromise. They would search for a home in
Their decision is one glimpse into the changing dynamics of coastal real estate. A growing awareness of sea level rise and flooding, coupled with rising flood insurance premiums as the federal government phases out subsidies, has the potential to reshape segments of the
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No one, of course, knows exactly what the future holds, but there's consensus on the broad strokes.
For some, like the Stiffs, waterfront property has simply lost its appeal.
"Previously, people looked at the school district or maybe property taxes, but now they're also asking about flood insurance," said
Committed to living in
Real estate agent
For months, the
That would add almost
Regular homeowners insurance does not cover flooding. Homes in the flood plains with mortgages are required by lenders to have insurance from the subsidized National Flood Insurance Program. It is struggling financially, and reforms are steadily increasing rates -- about 18 percent a year -- until they represent coverage of the true cost of the risk.
The specter of flood insurance is making the Larchmont home, assessed at around
"We've probably had 35 showings, and everybody has walked out because of the flood insurance," Heaton said.
The home is not unique in a city penetrated by tidal creeks with some of the highest rates of sea level rise in the country, a combination of sinking land and rising water.
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About a quarter of properties in
The number of homes that repeatedly flood, so-called "repetitive loss" properties, has increased from about 200 in 2002 to almost 900 today, said
Owners of these homes might be eligible for federal money to raise them above flood levels, but that money is competitive, and the option is not practical for all homes.
Minor flooding, partly driven by sea level rise, has also been increasing around
The Larchmont home has been so difficult for Heaton to sell that a creative solution is in the works that could be a model for flood zone homes in the future.
The idea is to make changes to the home to reduce flood damage and drive down insurance rates.
In this case, contractors would move the furnace, hot water heater and electric panel from the basement of the 1920s home into a newly created utility room in the upper part of the house. The basement would then be filled in, and vents would be added to allow floodwater to move in and then out from under the house.
The work would cost about
The seller and buyer would figure out how to split the cost, with the buyer's share getting wrapped into the mortgage as a type of renovation loan, he said.
An insurance agent has estimated the improvements would lower flood insurance
"The seller is now armed to negotiate with a buyer in a way that would allow them to move the house," Vernon said.
His prediction for the long term: "The National Flood Insurance Program is going to mitigate America. The houses in the flood plains are either going to be washed away, mitigated, or they're going to be demolished."
"You're basically on your own," she said.
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In
The lack of information has led to deals falling through at the last minute, officials say, as buyers discover they need flood insurance that would dramatically increase mortgage payments.
"The regular homeowner,
Wall and others have suggested
A panel advising the
Buyers may be on their own, but there are public resources to help.
For example, the first thing
"Every single house, I plug into Norfolk AIR," she said. "I don't even look at the pictures because I don't want to be disappointed."
She looked at detailed maps developed by NOAA and Climate Central, a nonprofit that focuses on climate change news, which predict what areas will be covered by water as sea level rises.
Even if the state doesn't change disclosure rules, the private sector might come up with its own solutions.
Real estate agents have no interest in seeing deals fall apart at the last minute, said
Some are informing buyers early with what's known as a "flooding addendum."
"Every agent understands we're in an era of full disclosure," he said. "It's going to come out at some point. The lender is going to look at it. How anyone would benefit from hiding it, I don't know. The only time we get paid is when something closes."
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"They're very cautious, and they're doing their homework upfront."
In late summer, the Stiffs' real estate agent told Mary-Carson about a home in the
But after a long summer of fruitless searching, she agreed to take a look. The view from the porch made her a little nervous. She could see water, a tributary of the
"It was like, 'I see you threatening,' " she recalled.
On the other hand, the 1923 home was elevated on a ridge that put it well above flood level. Plus, they liked it.
"I looked inside, and it was just perfect," she said. "It had everything we wanted."
It was a compromise of sorts. The flood plain was very close, but that's the case in so many parts of
Even though they were not required to have flood insurance, they planned to buy a policy anyway. It will run about
Most real estate and insurance agents, city planners and emergency planners in
"I just wouldn't own a home in
The region has the highest percentage of homes outside a flood zone that are potentially uninsured and at risk for storm surge flooding -- 86 percent, or 340,000 -- according to a recent study by
The night before closing on the home, Mary-Carson and
It was a short walk. The street running parallel to
They turned around, back toward the high ground of their new life.
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