A small California coastal community has become one of the hottest real estate markets in the United States, even as rising sea levels pose a threat to dozens of homes.
Beach house prices in Stinson Beach, an enclave in Marin County along Bolinas Bay, have quintupled from $688,000 in 2000 to $3.7 million in May of this year, figures from Zillow show. Last year alone home values increased 40 percent.
It comes even though county officials have repeatedly warned that rising sea levels could swallow community beaches and damage properties.
Lenders have already reduced mortgage underwriting in areas like Stinson Beach because of the problem. Zillow reported.
Beach houses in Stinson Beach, an enclave in Marin County along Bolinas Bay, have become the new hotspot for buyers in the United States.
Orphe Divounguy, senior economist at Zillow, told the San Francisco ChronicleOnly a small number of homes on the 5.5-kilometer-long beach come up for sale each year, causing home values to skyrocket.
The coastal city was established in 1906 after the San Francisco earthquake. The natural disaster left many refugees who began building Stinson Beach, according to Golden Gate Sotheby’s International Realty.
The beach area is known for its incredible ocean and Bay Area views from across the road, as well as its Dipsea Trail hike and Mount Tamalpais State Park.
Many buyers are looking to Stinson Beach for a second home to enjoy on weekends, said local real estate agent Ashley Bird. San Francisco Chronicle.
Home values in the area increased about 40 percent last year, as rising sea levels continue to damage homes and consume beaches.
“A lot of people in the Bay Area discovered Stinson for the first time and fell in love with him,” Bird said.
Although many have flocked to the community to enjoy the outdoors, since the pandemic there has been a “huge increase” in people wanting to buy the expensive homes there, Bird explained.
A home on Buena Vista Avenue sold in 2006 for $866,000, but in 2023, that same home sold for nearly $1.7 million.
Another home on Dipsea Road previously sold in 1999 for $740,000, according to a Zillow listing, but in 2022, that same two-bedroom home sold for $4.8 million.
In 2000, the estimated value of a home in Stinson Beach was $688,000, but 24 years later, the value rose to $1.3 million.
The coastal city was established in 1906 after the San Francisco earthquake. The natural disaster caused many shelters to begin being built in Stinson Beach.
Coastal erosion has long been a problem for the coastal city, but sea levels have risen dramatically over the years, posing a threat to most of Stinson Beach.
Beach area home values even surpassed luxury California cities, including Cupertino and Sunnyvale, where homes were valued at about four and a half times what they were in 2000.
Coastal erosion has long been a problem for the coastal city, but sea levels have risen dramatically over the years, posing a threat to most of Stinson Beach.
In May 2023, Marin County planners predicted that up to 600 homes in the area could end up underwater before the end of the century. KTVU reported.
A study found that by 2050 Highway 1, the highway that takes people in and out of Stinson Beach, could face increased flooding from storms if sea levels rise two feet.
That same report indicated that Bolinas Lagoon, an estuary in the community, could be underwater by 2099.
In an effort to prevent flooding from overtaking the area, officials have implemented a series of measures, including building levees, raising homes above the ground, expanding sand dunes and moving buildings out of dangerous areas.
Although rising sea levels have taken over the beach, homebuyers are still willing to take the risk, Bird said.
Senator Dianne Feinstein, who died on September 29, 2023, owned a home in Stinson Beach (pictured), among other properties across the country.
A study found that by 2050 Highway 1, the highway that takes people in and out of Stinson Beach, could face increased flooding from storms if sea levels rise two feet. (Pictured: A cyclist riding on Highway 1 in downtown Stinson Beach)
The real estate agent added that there are still some concerns about the brutal effects of climate change, but they believe in county leaders to save their expensive properties.
‘Our customers are not in the dark about this. “I don’t think anyone is…thinking it’s going away,” Bird said.
Senator Dianne Feinstein, who died on September 29, 2023, owned a home in Stinson Beach, among other properties across the country.
His $7.5 million west coast getaway in Marin County rivaled its views of San Francisco Bay with a view of Bolinas Lagoon, and added to his considerable $102 million real estate fortune.
Feinstein’s daughter claimed the senator wanted to sell the Stinson Beach property after the death of her billionaire second husband, Richard Blum, and said she would never visit without him.
Katherine sued the marital trust in early 2023 because she claimed Blum’s daughters were purposely delaying the sale so they could continue using it.
According to an investigation by politicalIt seemed like the legal battle was taking place almost entirely separately from Feinstein as she struggled with poor health in her final years.
Meanwhile, new figures recently revealed that first-time buyers facing soaring house prices are paying more to get less.
In May 2023, Marin County planners predicted that up to 600 homes in the area could end up underwater before the end of the century.
In May, homes in the area were estimated at $3.7 million, but were previously valued at $688,000 in 2000.
In the United States, the average home price has risen by more than a third to $442,500 over the past five years. But the average size of those sold has decreased in the same period.
This means buyers are now having to pay 52.7 per cent more than they would in May 2019 for a home of the same size, and this is partly due to the rise in working from home.
“It’s important to pay attention to the price-per-square-foot metric,” said Realtor.com senior economist Ralph McLaughlin.
“The change in that metric is a stronger measure of how much more a home is worth over time than looking at changes in the median list price.”
The trend can be seen throughout the country, but the most affected city is New York, where it has increased by 84.7 percent.
Boston, Massachusetts, also saw it rise 72.9 percent, while it soared 68.9 percent in Nashville, Tennessee.