Back in 2016 I wrote “Are markets so inefficient that global warming isn’t being priced properly?“
If sea level rise is imminent, why were people willing to pay $8 million for a Ft. Lauderdale house that was “approximately the same height above sea level as a crushproof cigarette pack”?
Three Harvard eggheads have looked at this more carefully in “Climate gentrification: from theory to empiricism in Miami-Dade County, Florida” (Environmental Research Letters, April 23, 2018)
They have to work pretty hard, but they do find a correlation between height above sea level and price appreciation.
- “Sea level rise is pushing coastal property owners to move to higher ground” (CNN), which also looks at research comparing rental rates to selling prices and finds that people are happy to rent at sea level and pack up the minivan after a big flood, but they’re cautious about buying