THE BIG PICTURE
TRENDS & ISSUES
Rising Tides KING TIDE FLOODING HAPPENS EVERY YEAR. BUT IT’S GETTING WORSE. HOW CONCERNED SHOULD INVESTORS BE?
by Robert Springer
A
ccording to Climate Central, Florida has more than 3.5 million people at risk of coastal flooding due to rising sea levels. That number is expect- ed to rise to 4.6 million by 2050. While South Florida is the poster child for coastal flooding due to global warming, it’s not the only American city expe- riencing the unwelcome phenomena. Boston, Charleston and San Francisco are just a few of many United States cit- ies to experience so called “king tides,” or the highest tides of the year. King or perigean tide flooding occurs once or twice a year, and is caused by the alignment of the increased gravitation- al pull of the sun and the moon when they’re closest to the Earth. King tide flooding is a natural occurrence but its effects are exacerbated by global warm- ing induced sea level rise. A few inches make a big difference when it comes to tidal flooding. The flooding tends to be worst in South Florida in September. “It’s just part of astronomy. It’s not mag- ic; it’s going to happen every year. Global warming heats up the oceans, causing the thermal expansion of the oceans and also melting glaciers, which adds water to the oceans and raises the sea level even fur- ther,” says Albert Slap, president of Coast Risk Consulting, a Florida-based compa- ny that offers detailed online assessments of a property’s flood risk. And while coastal flooding due to sea level rise is also a social and political problem, real estate investors inter-
ested in coastal properties need to be informed about its impacts or risk being swamped by dwindling property values.
SOME BUYERS CONCERNED; BUILDERS, NOT SO MUCH Despite the national publicity that king tide flooding in South Florida has generated, local Realtors say most buy- ers don’t seem overly concerned. “I hav- en’t seen contracts get cancelled because of them, but there have occasionally been buyers that decide not to come,” says Nancy Corey, branch manager for the Miami Beach Office of Coldwell Banker Residential Real Estate. “The buyers in our market are discre- tionary buyers, and they tend to be smart and well educated, so they will make a decision based on what it is that they want, based on the data that becomes available for them, or sometimes they just want the property. It’s not like any- one is not aware of it, but it may not be a factor of concern for them,” Corey says. Part of Miami Beach buyers’ lack of concern may come from the city’s robust response to the flooding. The island city has spent more than $400 million to elevate roads and install pumps. “There may be a level of com- fort with these buyers knowing that the city is responding to the situation and not acting like it doesn’t exist,” Corey says. “The one on Alton Road, which took a while to complete, used to be a
pond and you can drive through it now, so what they’re doing so far is working.” Builders are very bullish on South Florida real estate. Multimillion-dollar spec homes are being built in Miami Beach, which is pretty much ground zero for seeing the effects of king tide flooding. “Right now on the market on
12 | think realty magazine march :: april 2017
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