THE ECONOMIC CASE FOR 

COASTAL RESILIENCE

Photo description: Skagit Valley’s Historic Town of La Conner, Washington
U.S. coastlines have long been engines of economic 

growth. These drivers of commerce and culture 

are home to one in four Americans. Coastal 

areas are home to some of the country’s most 

diverse communities. 

Coastal areas are also highly vulnerable to natural 

disasters. In 2020, every mile of the mainland 

Atlantic coast was under watch or warning from 

tropical cyclones at some point. All but five coastal 

counties had tropical storm-force winds in that year. 

The threat is not only in the east coast. Coastal 

areas across the United States and territories all 

suffer costly disasters. Disasters have become 

more frequent and severe. 

2021 was the seventh consecutive year in which the 

U.S. experienced 10 or more billion-dollar natural 

disasters. Many of them were along the coasts. Each 

disaster, big or small, means damaged or disrupted 

businesses, communities and lives.

Map description: U.S. coastal counties include those on the Atlantic, Pacific, and Gulf coasts; Great Lakes; Alaskan coast; Hawaii; and U.S. territories.

THE COST OF COASTAL HAZARDS AND THE VALUE OF 

INVESTING IN EQUITABLE RESILIENCE

The United States has over 95,000 miles of 

shoreline. That’s the distance from Miami to 

Seattle nearly 35 times! 

FEMA considers communities to be coastal when 

they experience waves and storm surge. Coastal 

areas include:

∙ Atlantic coast

∙ Pacific coast

∙ Gulf coast

∙ Great Lakes

∙ Coastal Alaska

∙ Hawaii

∙ U.S. territories

However, the economic impact of the coasts 

extends far inland. 

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Coastal disasters are expensive. And they will 

happen. The question is not if, but when—and 

how often. But communities can act to reduce 

their losses, speed up recovery and build a stronger 

future for all residents. Building resilience against 

natural disasters can improve residents’ quality 

of life today. It can also protect them from disasters 

for decades to come.

That is why leaders in coastal areas must invest in 

resilience. This guide gives background on coastal 

natural disasters and their effect on communities 

nationwide—including yours. The pamphlet then 

explains how to reduce the risk from disasters. 

It offers case studies on what communities of all 

sizes do to reduce the impact of disasters.

THE COST OF COASTAL HAZARDS AND THE VALUE OF 

INVESTING IN EQUITABLE RESILIENCE, CONT’D

Photo description: Copper Harbor, Michigan

Coastal areas are dynamic, and so are their risks. 

Risk does not stay the same over time. The 

decisions of property owners and communities 

can raise or lower their risks—sometimes both at 

once. For example, a seawall can protect some 

properties but put others at a greater risk of 

damage. Changes to zoning and building codes 

can change how storms affect communities. 

Planners and local leaders should study many 

possible scenarios when deciding how to protect 

their communities.

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Resilience: The ability to prepare for and adapt 

to changing conditions. Resilient communities 

withstand disasters and recover quickly.

Hazard Mitigation: Any sustained action that 

reduces or eliminates long-term risk to people and 

property from disasters.

Mitigation and resilience are related. Mitigation 

supports a community’s ability to endure shocks. 

After a disaster, the impulse is to return to 

normal. Mitigation and resilience both encourage 

communities to move forward to a safer and 

stronger state.

THE IMPORTANCE OF 

COASTAL RESILIENCE

Resilience and hazard mitigation save lives. They 

reduce the risk of flooding, structural damage and 

other deadly hazards. 

In addition, billions of dollars in property are at 

risk when disasters strike. They threaten homes, 

businesses, schools, restaurants and cultural areas. 

Coastal disasters threaten our most dear places, 

our lifestyles, and our livelihoods. A community’s 

choices about resilience affect the level of damage 

they may face. 

Resilience efforts change the quality of life in sunny 

skies and during and after disasters. Investing in 

resilience is a chance to protect coastal communities.

Photo description: Texas Beach

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Coastal disasters have high costs. Some are easy 

to see and count. Others are hidden at first glance. 

Disasters destroy property, roads and buildings. 

They cause injuries and death. Emergency response 

costs add up as well. Other costs are longer term 

and often unseen. Businesses may shut down for 

weeks or months. Children may lose precious school 

days. Tourists may choose other places to visit. Then 

there is the price of trauma and anxiety. This includes 

the fear that, after a storm has passed, it could all 

happen again. 

Disasters cost individuals, households, businesses 

and the community as a whole. Disasters affect 

people and communities in different ways. 

Communities and people with resources bounce 

back the fastest. Those with less access to 

resources are often left scrambling for months 

or years after a disaster. 

Individual households suffer the costs from disasters.

The costs are most severe for low- and moderateincome families.Households with less money saved 

may find it hard to find temporary housing. People 

who work at low-wage hourly jobs may lose those jobs

if they cannot repair or replace damaged cars or 

use—or if public transportation is no longer running. 

Age, race, gender, social class, disability, ethnicity 

and other factors can affect how quickly people 

recover from a disaster. Without support, disasters 

push struggling families deeper into poverty.

Coastal businesses suffer from disasters. Those 

that depend on the coast, such as fisheries and 

tourism, are more vulnerable. For example, extreme 

environmental events caused nearly 85% of fisheries 

disaster declared by the National Oceanographic 

and Atmospheric Administration (NOAA) between 

1994 and 2020. Many working waterfronts are trying 

to reduce the risks to water-dependent businesses. 

On a larger scale, disasters cost communities. 

Building and road damage can put a major strain 

on budgets. Communities must pay for emergency 

services, clean-up and other recovery costs. Later, 

the local government may see a 5 to 6% decrease 

in tax revenues and/or a lower bond rating.Damaged 

ecosystem services affect the community as well. 

Fallen trees will not help with heat waves. Polluted 

waters are less likely to attract tourists. 

The infographic on the next page shows a small 

set of natural disasters from 2020 through 2022. 

The map does not list every disaster. Instead, 

it shows brief snapshots of how disasters have 

hit coastal communities.

THE COST OF 

COASTAL DISASTERS Underserved communities experience differences 

in how prepared they are to respond to disasters, 

how well their homes have been adapted to 

mitigate against local hazards, and how quickly 

their communities are able to resume social and 

economic life after a major event. FEMA must 

direct its resources to eliminate disparities in 

these outcomes. 

2022-2026 FEMA Strategic Plan

Photo description: Water crashing over bridge during Hurricane Harvey in Kemah Texas
GREAT LAKES 2020

A FOOT OF ICE ON 

THE RAILROAD TRACKS

Winds and 15 foot waves on top 

of record high water levels in Lake 

Michigan caused major flooding to 

the Port of Milwaukee. Floodwaters 

froze on the rail leading out of the 

port, leaving a foot 

of ice. 

TOTAL LOSSES: 

$10M+

ALASKA 2022

300 FEET OF EROSION

Hooper Bay, Alaska lost four rows of 

dunes to erosion in a severe storm 

in September 2022. Only one row 

of dunes remained. The local middle 

school science teacher measured 

300 feet of erosion. 

TOTAL LOSSES: 

$15M+

NEW JERSEY 2021

86 RESCUES

When Tropical Storm Henri

hit Newark, New Jersey, 

police and firefighters 

rescued 59 adults and 16 

children. Most were stuck 

in flooded cars. One house 

was evacuated 

after its 

foundation 

collapsed. 

TOTAL LOSSES: 

$700M

LOUISIANA 2021

STILL FLOODED TWO 

MONTHS LATER

Two months after Hurricane Ida, 

homes in LaPlace, Louisiana 

were still flooded and growing 

moldy. One such house had 

been in the resident’s family 

for more than a hundred years. 

Their great-grandparents 

had built it 

after immigrating

from Africa. TOTAL LOSSES: 

$76.5B

PUERTO RICO 2020

LOSSES TO FARMERS 

STILL RECOVERING 

Hurricane Isaías destroyed $50 million 

in crops from Puerto Rico’s farms. 

One farmer lost 10,000 banana 

plants. This crop would have 

been only his second 

harvest since Hurricane 

Maria in 2017. TOTAL LOSSES: 

$5.2B

CALIFORNIA 2021

THE ROAD FELL 

INTO THE OCEAN

Heavy rains fell on burn scars left 

by wildfires. This led to floods and 

mudslides. One police officer was 

driving down the highway when he 

saw coastal erosion so severe that

a “section of roadway...had 

fallen into the ocean.”

TOTAL LOSSES: 

$1.2B

HAWAII 2021

WAIST-DEEP 

FLOODWATERS 

A Kona storm (cyclone) caused 

flooding in Hawaii. It damaged 

homes and businesses across 

several islands. Honolulu saw 

waist-deep floodwaters. Damage 

to a power station left many 

without electricity. 

TOTAL LOSSES: 

$5M+

EVERY DISASTER IS EXPENSIVE

EVERY DISASTER TELLS A STORY

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Building resilience is a smart economic decision. 

Research from the National Institute for Building 

Sciences shows that every $1 spent on mitigation 

saves $6 on future disaster losses. Simply put, 

mitigation prevents severe losses from disasters.

Every coastal community is unique. Natural disasters 

affect different areas in different ways. But there 

are tried and tested solutions that help communities 

avoid losses when disasters strike. It can be useful 

to think about these tools in four buckets: 

Move buildings out of harm’s way. Buyout programs 

can cost time and money. They can also have a high 

emotional cost. However, removing homes from 

danger is the most effective way to keep people 

safe and prevent damage. Buyouts can create new 

natural assets for the community. They can also save

communities from disasters that would have a much 

worse impact.

Update or retrofit critical infrastructure that support 

community lifelines. When critical roads, lines, 

rail, and buildings are damaged, businesses stop 

functioning. Then, residents suffer. Repairs can be 

costly. Losing essential services can be even costlier. 

When possible, build critical facilities on high ground. 

Buy backup generators and temporary flood barriers. 

Harden the facilities against flood and extreme 

heat. This way, a storm is more likely to last just 

a few hours. It will not leave residents without 

power or clean water for days, weeks, or months. 

Losing power and water can harm people and hurt 

local businesses.

Raise homes and other structures and/or build 

barriers to protect against hazards. Retrofitting old 

buildings can reduce risks, especially in conjunction 

with strengthened building codes. Elevating houses 

is proven to save money over time. Coastal 

communities also build seawalls and other grey 

infrastructure protection. These measures often 

work best with green or nature-based solutions.

MITIGATION PREVENTS 

ECONOMIC LOSSES

TRIED AND TESTED METHODS THAT 

PREVENT LOSSES

Photo description: Aerial of lower Manhattan skyline, New York, USA

Structure and infrastructure

Critical infrastructure includes:

Power lines and utilities

Roads

Water and wastewater facilities

Railroads and mass transit

Energy facilities

These facilities support “community lifelines” 

needed to keep communities running.

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TRIED AND TESTED METHODS THAT 

PREVENT LOSSES, CONT’D

Use the power of natural features to reduce the 

risks from natural disasters. Nature-based solutions 

work to protect coastal communities and vary in scale. 

They could be a single rain garden or bioswale off a 

parking lot to reduce flooding from a road. At large scales, 

nature-based solutions can protect or restore several 

acres of dunes and wetlands. Dunes and wetlands absorb 

storm surge and wave energy during storms. They can 

also reduce damage. However, projects are most effective 

at larger scales. Finding space for large projects can pose 

challenges for built-out urban areas.

Nature-based solutions and projects often cost less than 

grey solutions. They can also promote economic growth, 

green jobs, higher property values, environmental quality 

and public health.

Use building codes and standards to require new 

buildings to be more resilient. Hazard-resistant 

building codes support construction that resists wind, 

water, seismic activity, fires and other hazards. Newer 

codes reduce the cost of damage when a disaster 

strikes. Every dollar invested in developing and enforcing 

strong building codes saves $11 following a disaster. 

They also help communities avoid the hidden losses from 

moving, lost rent, extra living expenses, lost tax revenue, 

and the health effects of unsafe or uncertain housing. 

The economic and social impact of halting or relocating 

businesses and services for repairs can be massive.

Inspire and teach your community about risks 

and resilience. When residents know their risks and 

options to reduce it, they can better protect themselves, 

their families and their property. 

People are not born knowing how to reduce their risks. 

And, until a disaster hits, many people do not spend time 

and money to prepare. After a disaster, they may wish 

they had. It is not easy to count the cost savings from 

education and outreach. Giving people the facts they 

need to stay safe and protect their property has a human 

and economic benefit. 

Reach socially vulnerable populations and build 

relationships across the community. Relationships 

between neighbors build social resilience. Communities 

where residents know each other and have strong bonds 

often fare better during disasters. Education and 

outreach can build those critical connections.

Think about the whole community when planning 

outreach. Make sure all meeting places (buildings 

and neighborhoods) are accessible to people with 

disabilities. Use locations that residents can reach 

without a car. Translate materials into languages used 

in the community. These should include meeting notices.

Local leaders and decision makers across the country 

use these tools to make their communities stronger. 

The infographic on the next page explains the economics 

of some mitigation tools. It also gives brief case studies 

from communities that successfully used them. 

Nature-Based Solutions

 Education and outreach

Plans work best when they provide:

Detailed descriptions of resilience projects

Concrete timelines and funding sources

Next steps for each action

One easy way to focus on actions in plans is to 

align with comprehensive and capital planning.

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4

Plan where and how to invest in resilience. Hazard 

mitigation, climate adaptation and other plans help 

community develop and prioritize actions to advance 

equity and resilience. Planning processes should include 

input from the whole community. They should include 

socially vulnerable populations. 

3 Plans and regulations

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INFO

Sources:

FEMA (2020). Building Codes Save: A Nationwide Study. 

Multi-Hazard Mitigation Council (2019). Natural Hazard Mitigation Saves: 2019 Report. Porter, K. et. al. National Institute of Building Sciences. Washington, DC. 

Narayan, S., Beck, M.W., Wilson, P. et al. (2017). The Value of Coastal Wetlands for Flood Damage Reduction in the Northeastern USA. Sci Rep 7, 9463. 

Reguero, B. et. al (2018). Comparing the cost effectiveness of nature-based and coastal adaptation: A case study from the Gulf Coast of the United States. PLoS ONE 13(4)

1 This study reviewed the Gulf of Mexico only.

After Hurricane Katrina, Jefferson Parish, LA used 

FEMA grants and other funds to elevate 23 homes. 

So far, the project has saved more than double its 

cost in avoided losses.

Retrofit existing buildings and update utilities: 

For every $1 invested, 

avoid $4 in losses.

Build new coastal homes 2 feet above 

the 1%-annual-chance flood level: 

For every $1 invested, 

avoid $17 in losses.

1 STRUCTURE AND INFRASTRUCTURE

2

Enforce the most recent IRC/IBC codes for 

new coastal buildings: 

For every $1 invested, 

avoid $11 in losses.

Texas buildings built to meet building codes were 

stronger during Hurricane Harvey. Their insurance 

claims were half those of buildings built before 

the codes were adopted.

3 PLANS AND REGULATIONS

Lots of people are interested in resilience, reducing 

the impacts of climate change, and/or community 

safety. Connect hazard mitigation to existing concerns 

and priorities. 

The city and county of Honolulu found that, 

of 900 survey respondents, 

more than 75% 

wanted to see the government spend more money 

on resilience to the impacts of climate change.

4 EDUCATION AND OUTREACH

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Wetland and reef restoration:

For every $1 invested, avoid 

$7 in losses.1

A study found that 

Wetlands prevented $625 

million in losses 

just from Hurricane Sandy. 

Natural shoreline protection on the North Carolina 

shore was not damaged by Hurricane Irene. In contrast, 

the storm damaged more than 76% of bulkheads.

2 NATURE-BASED SOLUTIONS

3

4

COASTAL MITIGATION 

IS WORTH THE INVESTMENT

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The question of who pays and who saves in risk 

reduction is complex. Property owners, developers, 

or taxpayers at the local, state, or federal level may 

make investments. They could also be made by a 

mix of those people. Those who invest may recoup 

their costs through avoided losses. They may also 

gain from lower insurance rates. The benefits of a 

resilient community, such as a strong tax base and 

protected property values, also help. 

It can be hard to convince a person or organization 

to invest in risk reduction if they will not be the 

one to benefit from avoided losses. For example, 

a developer may oppose stronger building codes 

because they will raise building costs. Buyouts 

may reduce the local property tax base. Making 

the economic case for risk reduction often needs 

a long-term, whole community view. 

Disasters hurt communities. Every disaster and 

community are different. In most cases, though, 

worse losses and bigger impacts mean it takes 

longer to recover. Disasters can change demographic 

and social patterns. Such changes can lead 

to business losses long after an event. Lasting 

damage can have a negative impact on views 

about a community.

For those who already invested in the community’s 

future, it can help to present mitigation as a 

group activity. It protects what is special about 

a community for generations to come. It brings 

benefits to everyone.

MITIGATION IS A 

COMMUNITY EFFORT 

CO-BENEFITS OF MITIGATION

Along with reducing risks, mitigation can 

bring immediate benefits and economic 

growth. Benefits can include:

Job creation – New mitigation projects bring new 

jobs. Los Angeles, California spent $166 million 

on nature-based mitigation from 2012 to 2014.

The investment made more than 2,000 new jobs. 

Structure and infrastructure projects also often 

create jobs in engineering and construction.

Community cohesion and social resilience – 

Hazard mitigation and resilience planning give 

community leaders and members ways to meet 

and learn from each other. These connections 

build a stronger community during and between 

disasters. Resilience efforts also give chances 

to reach out to underserved populations. 

Communities are stronger when their leaders 

know the needs and concerns of all.

Natural beauty and tourism – Nature-base 

solutions help the beauty of an area to shine 

through when its wild landscapes can thrive. 

This can increase quality of life for residents. 

It can also bring tourists to the area.

Health – Mitigation projects often add green 

space. These spaces can benefit both physical 

and mental health. They can also lead to better 

air and water quality. Those changes may have a 

long-term positive health effect for the community. 

Photo description: Pohoiki Black sand beach, Pahoa, Big Island, Hawaii, USA
Reach out to your State Hazard Mitigation Officer and/

or regional FEMA office for more resources and support.

More information on coastal hazards 

and equitable resilience

∙ Learn about how your community can use flood 

maps and other data to reduce risk and build 

resilience from the Thinking Beyond Flood Maps: 

Using FEMA Coastal Data to Reduce Risk and 

Build Resilience story map. 

∙ Refer to the Guide to Expanding Mitigation: 

Making the Connection to the Coast to learn 

about coastal hazards and how your community 

can protect itself.

∙ The Guide to Expanding Mitigation: Making the 

Connection to Equity gives information and 

resources on equity and mitigation. Building 

Alliances for Equitable Resilience gives 

information on equity and stories from 

FEMA’s partners.

Grants, resources and technical assistance

∙ Many grant sources can be used to reduce risks. 

The Mitigation Resource Guide gives a detailed 

list of grants and support. See the sidebar for 

examples of how communities have used nontraditional sources for resilience projects.

∙ FEMA gives grant funding to help communities 

reduce their risks. 

 ̊ The Building Resilient Infrastructure and 

Communities grant program gave more 

than $1 billion to states, tribes, territories 

and local communities in FY 2021. 

 ̊ The Flood Mitigation Assistance grant 

program gives funding to states, tribes, 

territories and local communities to 

reduce or eliminate flood damages. 

 ̊ The Hazard Mitigation Grant Program 

gives funding for long-term hazard 

mitigation planning and projects 

following a major disaster declaration.

∙ Disaster-resistant building codes save lives 

and protect public and private investments. 

Learn about your local building codes. 

Refer to the Guide to Expanding Mitigation: 

Making the Connection to Building Codes 

and Standards and FEMA’s Building Sciences 

team for more information. 

∙ There are many ways to pay for investments 

in resilience. Some communities have found 

success using bonds and other ways to finance 

resilience projects.

NEXT STEPS 

Where can I find funding and/or support for 

resilience projects?

Many federal and state grants can be used to 

protect your community from natural hazards. 

Do not ignore programs that do not focus on 

resilience! Other types of grants may have 

resilience benefits. Think about these examples:

The city of Houston, Texas worked with the NOAA’s 

Coastal and Estuarine Land Conservation program. 

They worked to buy and protect Brays Bayou in 

Houston. The land captures stormwater runoff, 

reduces flooding, improves habitat and gives 

green space to residents.

Provincetown, Massachusetts got grant support 

from the Environmental Protection Agency’s NonPoint Source program. The grant paid for porous 

pavement. The change reduced stormwater runoff 

into the harbor. The project also reduced pollution 

and can lessen flooding.

The Port Gamble S’Klallam Tribe joined with 

the North Olympic Salmon Coalition to replace 

a causeway with a bridge. The $1.5 million 

grant from NOAA’s Coastal Resilience Grant 

Program (now the National Coastal Resilience 

Fund) restored marshland and the tidal channel. 

This improves water quality. It also supports 

endangered chinook and summer chum. The 

project included raising the road to Marrowstone 

Island and its buried utility lines out of the 1% 

annual chance flood zone. 

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REFERENCES AND MATERIALS:

∙ FEMA Coastal Resources: https://www.fema.gov/flood-maps/coastal

∙ FEMA Nature-Based Solutions: https://www.fema.gov/emergency-managers/risk-management/

nature-based-solutions

∙ NOAA’s Office of Coastal Management: https://www.coast.noaa.gov/

∙ Natural Hazard Mitigation Saves: https://www.nibs.org/projects/natural-hazard-mitigation-saves-2019-report

Photo description: Crab traps on a dock in Cape May Harbor

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