Hawaii is known for its stunning beaches, beautiful scenery and tropical climate, making it one of the most coveted vacation spots in the United States. But the future of Hawaii’s property values may be in peril as sea levels are predicted to rise due to global warming. Homeowners and prospective buyers in Hawaii should be aware of the potential impacts.
The rise in sea levels can cause water to seep into basement foundations, beach erosion, flooding of coastal and low-lying areas, wetland inundation and – potentially – displacement of thousands of homeowners.
Sea level rise is estimated to affect 50 percent of Hawaiian homes by 2100, and some models suggest it could be as soon as 2030. As experts predict the worst-case scenario predictions to come true, there is an increasing need for homeowners and buyers to be aware of their potential property risk.
Understanding the Risks
The biggest risk of sea-level rise is that the value of a home is likely to decrease with increasing water surrounding it. Home owners and potential homebuyers in Hawaii should research the location of the property in relation to sea-level rise predictions, in order to better understand the risk of their prospective purchase.
The State of Hawaii also provides resources to better understand coastal erosion, flooding, and wetland inundation through its Coastal Zone Management Program (CZMP). There are also local outreach programs that help educate communities about the risks of rising sea levels, as well as the potential impacts on homes and property values. Additionally, the government offers various grants and programs to help mitigate some of the risks.
Impacts to Property Values
Increasing sea levels will likely lead to decreases in property values throughout the state. As coastal areas become more prone to flooding, inundation, beach erosion, and other natural disasters, people may become less likely to purchase properties that are located in high-risk areas. This could lead to a decrease in demand, and thus a decrease in property prices.
In addition, insurance companies are likely to increase premiums for homes located in high-risk flood zones. This increase in insurance costs is likely to further decrease the demand and therefore the value of properties located in these areas.
The plot above illustrates the predicted sea-level rise in Hawaii, as well as the corresponding decrease in average home values. While the data may not be exact, it illustrates a trend of decreasing property values as sea levels rise.
Mitigating Risks
Homeowners and buyers may take a number of steps to mitigate their risk. These include researching the risk of sea-level rise and coastal erosion for the area of their prospective purchase, employing property-level prevention measures such as waterproofing, raising the foundation, and elevating utilities, as well as considering home and flood insurance.
Additionally, communities can work together to promote conservation efforts by reducing greenhouse gas emissions and investing in alternative energy sources. These measures can help slow the progression of climate change and minimize the potential impacts of sea-level rise to Hawaii’s property values.
Conclusion
As sea levels continue to rise, Hawaiian property values will continue to be impacted. Homeowners and potential buyers should seek to understand the risks associated with their prospective purchase and consider various options for mitigating those risks. Through these measures,Hawaii residents can have confidence that they have taken the necessary steps to protect their investments.