A reader of mine asked the following question in a recent email If climate change is such a threat, how come U.S. coastal properties continue to rise in value This seems like a conundrum unless you know what is actually driving the trend. And, it's worth noting that coastal home prices in certain instances have suddenly collapsed along with the shoreline next to those homes due to coastal erosion—which, not surprisingly, increases with rising sea level.
Local, state and federal governments continue to build, rebuild and upgrade public infrastructure to facilitate coastal development in risky places. For example, Ocean City, New Jersey got the Army Corp of Engineers to pump more than 1.8 million cubic yards of sand to restore its beaches after Hurricane Sandy washed them away. The city paid $4 million for the sand pumping while the federal government paid $14 million.