An underwater home typically refers to a mortgage that is higher than the property's value. But as rising seas are expected to increasingly flood South Florida, scientists and economists
have warned that the term might be taken literally one day.
A new
study recently released by Zillow, the online real estate database, has quantified the effect of sea level rise on property values, and the findings are startling: $413 billion worth of properties are at risk of being at least partially submerged in Florida by 2100 — the most of any state, accounting for half of the nation's total projected $882 billion worth of property at risk of being flooded.
"That could even be a low number," says Stephen Tilbrook, an environmental lawyer based in Fort Lauderdale. "We haven't developed an understanding for a lot of impacts of sea level rise yet."
For years, experts have speculated that rising waters will instigate another housing crisis. Of course, the shock of a sea-level-induced market crash will be felt the worst in Florida, where one in eight houses is at risk of being at least partially underwater if sea levels rise six feet by 2100. There has been some discussion about brokers considering the effects of sea level rise before issuing 30-year mortgages and realtors disclosing flood risk to potential buyers.
Sea Level Rise Could Cost Florida $400 Billion in Property Loss
I think that is a far too optimistic estimate of the real estate losses that are going to happen in Florida due to sea level rise. There will be a great many people that will simply walk away from their mortgages, and land that is low, but not flooded at that time will loose most of it's value.