According to 2023 data from the Yale Program on Climate Change Communication, 72% of Americans believe global warming is happening. However, only 42% think it will personally affect them. âThereâs much better awareness of climate change generally,â reiterates Michael Berkowitz, executive director of the University of Miamiâs Climate Resilience Academy and former managing director of the Rockefeller Foundationâs 100 Resilient Cities. âBut I still think we have a ways to go in terms of people really internalizing it.â One example can be found in the ultra-luxury real estate market.
Take Floridaâs seaside Miami-Dade and Broward counties, which each sit at an average elevation of six feet. By 2060, sea levels are predicted to rise enough that 60% of the land would be underwater; by 2100, both will be entirely submerged. Since 2006, chronic tidal flooding, also called sunny day flooding, in Miami has increased more than 400%, caused by the changing climateâs more frequent storm surges and higher tides. Yet the market demand for luxury homes priced at $10 million and above in these areas remains unbelievably strong.
âThereâs tremendous demand from affluent individuals all over the world to own a property here,â says Douglas Elliman realtor Dina Goldentayer, whose sales have exceeded $2 billion since 2021. âPrices in Miami Beach, the market I specialize in, are two times what they were pre-pandemic.â When the wealthy have the luxury of choice in where they live, they are still choosing Americaâs coasts, despite their status as climate danger zones.
âSome peopleâs decisions are driven by where their kids will be going to school. Others may not have kids, and their decision could be around, âWill my boat fit at this property?â But the fact that Floridaâs economic policies are so favorable to ultra-high-net-worth people is why this market continues to rage on way past Covid,â Goldentayer reveals, noting that people in Miami tend to own properties for three to five years. âI can’t remember the last time I had the rising sea water conversation with someone,â she adds, saying that âpolitical reasonsâ are another major factor she has seen in clients moving to Miami from other states like California.
Compass agent Chad Carroll, who focuses on the ultra-luxury market in both Miami-Dade and Broward counties, feels real estate agents have a duty to âeducateâ their clients. âWhen a client brings up [climate change], we go through the changes that the cities are doing, whether theyâre installing pump systems, raising sea walls or streets, undergrounding power lines, and their timelines,â he says, noting his clients are generally purchasing with a long-term lens. However, both say that unless a property for sale is below the flood plain, buyers are not generally concerned.
That approach is short-sighted, Berkowitz urges. âA lot of the strategies you might employ to keep the water out arenât relevant because the water will just come up through the porous Miami limestone,â he says, noting that climate experts âhave a lot to learn from public healthâ in how to approach disseminating information on âreducing risks, building adaptive strategies, and mitigating the impacts.â He cites the surgeon generalâs successful antismoking campaign, which changed the publicâs behaviors âover three generations.â
On the other coast, Californiaâs ultra-luxury residential buyers are slowly becoming a bit more cautious. In 2023, more people moved out of high-risk fire counties like the coastal Ventura and Santa Cruz and the inland Solano than into them, says a new Redfin survey. In Los Angeles, where extreme heat and drought is expected to become more intense and prolonged due to climate change, high-end home buyers are concerned about natural disasters so far as it affects their bottom line. âClimate change is always a topic of discussion, especially when the buyer learns about the insurance costs,â says luxury realtor Shelton Wilder, referencing the fact that many home insurance companies have fled California and Florida due to increased claims after more frequent environmental disasters. âI have buyers ask about the structural aspects of a home pertaining to earthquakes, so we are always doing inspections to ensure the property is insurable.â These conversations are all happening while, earlier this year, three multimillion dollar homes on a cliff in Dana Point, California, appeared at serious risk of falling into the ocean.
