Commercial brokerage CBRE published a report that analyzed the threat of flooding among cities throughout the country, and revealed that the Miami metro area is the most vulnerable to flooding; the region risks losing billions of dollars should a catastrophic flood occur, and studies suggest that the possibility is not too far off.
The South Florida area, which includes the counties of Miami-Dade, Broward, and Palm Beach, stands to lose $366 billion worth of real estate in the event of a so-called “100-year flood.” In comparison, the greater New York area has $237 billion worth of real estate at risk of flooding, and New Orleans has $144 billion.
CBRE Florida division director of research and analysis Quinn Eddins—also the author of the report—maintained that if nothing will be done about the issue at hand, the consequences would be severe. He added that the real estate community should not rely on public infrastructure to protect the value of their assets, and instead should take matters into their own hands. He suggested that the real estate community could increase flood insurance coverage, remodel buildings to make them tougher against flooding, and/or rethink about building in coastal areas that are susceptible to flooding.
The real estate of South Florida faces average yearly losses of $672 million due to flooding. Recent and further developments such as condominium towers could increase the losses even more.
While select areas have begun developing countermeasures, such as Miami Beach’s $500 million pump and road-raising project, the South Florida region cannot so easily mitigate sea level rise, which can worsen flooding conditions.
By 2030, the sea level is expected to rise 6 to 10 inches in South Florida, according to information from the Southeast Florida Regional Compact. The CBRE report also noted that storm surges can cause sea levels to momentarily rise by as much as 5 feet during hurricanes by 2050, further highlighting the need for long-term solutions to flooding.
