The Potential Effect of Sea Level Rise on Coastal Property Values

Abstract:

It is well established that one consequence of increasing global sea level is that the frequency of flooding at low-lying coastal sites will increase. We review recent evidence that the effects coastal geometry will create substantial spatial variations in the changes in flooding frequency with scales of order 100km. Using a simple model of the evolution of coastal property values we demonstrate that a consequence of sea level rise is that the appreciation of coastal properties will peak, and then decline relative to higher properties. The time when the value reach a maximum is shown to depend upon the demand for the coastal property, and the local rate of change of flooding frequency due to sea level rise. The simple model is then extended to include, in an elementary manner, the effects on the value of adjacent but higher properties. We show that the effect of increased flooding frequency of the lower properties leads to an accelerated appreciation of the value of upland properties and an accelerated decline in the value of the coastal properties. We then provide some example calculations for selected sites. We conclude with a discussion of comparisons of the prediction of the analyses to recent data, and then comments on the impact of sea level rise on tax base of coastal communities.