Introduction

Abstract

Despite its vulnerability to flooding associated with sea-level rise, coastal South Florida continues to attract large numbers of new residents each day. Information about flood insurance requirements and flood-risk is widely available, but our 2018 survey found that coastal residents seemed relatively unconcerned about the future value of their homes. At the same time, some econometric studies have found that proximity to the coast may have a negative impact on both demand and sales price of coastal housing. Clearly, the south Florida coast is both an amenity and increasingly a hazard. Two other factors potentially impacted the market as of 2020. First, as of the summer of 2020, detailed, property-level information was made available about flood risk to prospective homebuyers on the website of the National Association of Realtors^®. Second, the price and availability of flood insurance came into greater focus as there was serious discussion of revising the price structure of federal flood insurance for properties at substantial risk. To gain a perspective on the impacts of increased attention to the hazard of sea-level rise on the residential property market, we administered a survey in the fall of 2020 to 680 licensed Florida estate brokers and sales associates. We asked the real estate agents to describe what they observed in working with prospective south Florida homebuyers, and their assessment of local housing market trends. The analysis of their views has important implications for understanding how the risks of climate change and sea-level rise are reflected in the housing market both now and in the near-term future.