At the center of the fight are the questions of who gets to live by the water, and who should shoulder the burden of costs that rise with the sea level. The estimated 13 million people who reside in the officially designated floodplain are divided between those who can buy pricey waterfront homes and those consigned to live in less desirable, low-lying areas because that’s all they can afford. Some of the people hardest-hit by major recent storms have been vulnerable communities in New Orleans; Port Arthur, Texas, outside Houston; and poor neighborhoods in the farthest reaches of New York City. The updated flood-insurance system is designed to help those populations, but in coastal communities across the country, uncertainty about the new prices is spreading fear that however well intentioned, the administration’s policy will exacerbate the inequality of beachfront living, pushing out homeowners most sensitive to climbing insurance rates.
Real estate is famously about location, location, location with recent examples – COVID-19 migration and opportunities in the metaverse – illustrating this maxim. The coast may be one of the most desirable locations as there is only so much of it and people like the views and access to the water and beaches. Even though not all coastal properties are really expensive, such land near big cities and destinations can be very pricey with high demand.
Even as the insurance program is updated, perhaps the real long term question is just how many people should be able to live on the coast at all given climate change, environmental concerns including erosion and habitat degradation, and an interest in keeping shoreline available for public use. Is there any chance more coastline in popular areas is protected fifty or one hundred years from now or are the market pressures just too strong?