You would think that the insurance industry might lead the way in changing behaviors due to the increased potential for losses from flooding. But because we have a federally subsidized flood insurance program, those financial risks are being passed along to the general population of the United States.
Reading this article, it has become clear to me that it will be the financial industry that leads the way (if they are responsible in their lending). A loan for home X might cost Y, but a home on the ocean, might cost Z to finance because of the increased risks of default due to the flooding risk.
The problem with this scenario is that if insurance continues to cover losses, the banks may well just keep loaning the money. It will likely take a mega-disaster in the form of a major hurricane or other storm to get everyone's attention.
Claire Rubin shared the link above.