Back in 2014, Rick Scott, then republican governor of Florida, was asked if he had a plan to deal with Climate Change. Here’s a 24-second YouTube video clip in which Scott gives his answer: No Plan. That was his position for the remainder of his term in office.
The threat posed by sea level rise to the future of Miami is known and it is dire. Yet people continue to purchase ocean front properties as if no such threat exists. The question is, why? Noah Smith, in an opinion piece for Bloomberg News dated May 3, 2018, suggested that “Increased probability of coastal flooding makes waterfront real estate a bit like a junk bond.” It’s an analogy that calls for elaboration.
A junk bond is a high-yield, moderate-risk security. For example, a city in danger of going broke, may raise money by selling ten-year junk bonds that pay a higher rate of interest (the yield) to attract buyers. The risk to the buyer is that the city may go bankrupt before the ten-year maturity date is reached, in which case the bonds become worthless. Waterfront property threatened by ocean flooding can be compared to that city. The property will continue to attract investors so long as it continues to offer a higher than normal quality of life (real or imagined). That’s the yield. The risk to the buyer in the short term — 10 to 20 years — is the unlikely chance that the property insurers (private or government) run out of money to cover damage when flooding does occur. In other words, the short-term risk to the buyer is negligible.
What about the long term threat posed by sea level rise (3 to 6 feet higher by the end of the century)? As far as Miami real estate transactions are concerned, it hasn’t yet become an issue. The immediate attraction of a higher quality of life (seaside living) has so far trumped whatever worries buyers may have about sea level rise. Furthermore, the prevailing political position has been to avoid giving the buyers reasons to to worry. State officials have taken a see-no-evil, speak-no-evil approach to the threat. There are no zoning laws or other disincentives aimed at discouraging further development in the region’s flood-prone areas. In effect, the politicians are sitting on their hands, apparently waiting for the ocean to force the issue.
That raises another question: when forced to act by rising waters, what will the city or the state do to protect the people and their way of life? Move them to higher ground? Miami is built on land that lies barely above sea level. The average elevation of Miami-Dade County is about 6 feet. The highest point in the county is about 25 feet. This means that high-tide flooding already affects those parts of the city that sit at little more than a foot and a half above Mean Sea Level (the average level of the sea between high and low tide). And even conservative predictions say that in 15 to 25 years, sea level will be a foot higher than it is today.
There’s a geological feature called the Atlantic Coastal Ridge stretching along the eastern edge of the Florida peninsula. It consists of outcrops of limestone, which In some places provide marginally higher ground. For example, the North Miami communities known as Little Haiti and Liberty City are built on ridge limestone that rises a few feet higher than the surrounding land. Noah Smith, in his opinion piece for Bloomberg News, mentions studies showing that “higher elevation locations have risen in price faster than similar locations at low elevations.” Okay. But it’s a side issue. The population of the Miami metropolitan area is pushing seven million. The place can’t speculate its way out of the problems that lie ahead. It needs a real plan.
Florida now has a new Governor, Ron DeSantis, another republican. Here’s a YouTube video in which he says, “I see the sea rising, I see the flooding in South Florida, so I think you’d be a fool not to consider that as an issue we need to address.” That’s progress. Let’s see what he actually does about it?