Gulf of Mexico
KRIS file photo.

TX - Steady demand for coastal real estate despite flood risks

According to a new report from real estate company Redfin, the cost of homes in coastal areas that are more prone to flooding have gone up around 14% this year.

CORPUS CHRISTI, Texas — For most people, buying a home is the biggest investment they'll ever make.

So, why are more people choosing to buy homes in the Coastal Bend?

As they say, its all about location, location, location.

"I've got a fascination with boats so this was a good way to have the boat here in my backyard," said Lynn Frazier.

This Snug Harbor resident got what he wanted, living in North Beach near the canals.

FEMA requires homes in the these areas be elevated to at least 13 feet above sea level.

"We stayed here in the house during Hurricane Hanna and the water came up about 4 feet," said Frazier.

According to a new report from real estate company Redfin, the cost of homes in coastal areas that are more prone to flooding have gone up around 14% this year.

Dr. David Yoskowitz is a senior executive director at the Harte Research Institute for Gulf of Mexico studies.

"Everything suggest that there's going to be more intense hurricanes into the future," Yoskowitz said.

If this is the case why are more people buying, at higher prices, despite the risk?

A CBS News report shows people with high incomes can afford to pay extra measures like flood insurance and the cost to move homes onto stilts. The Redfin report backs that up, showing 1 to 2 inches of water entering your home can cause at least $25,000 worth of damage.

Read more.