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What New Jersey’s REAL Regulations Could Mean for Homeowners, Buyers, and Sellers
New Jersey is preparing for one of the most significant land-use and flood-risk regulatory updates in decades. The proposal is called REAL — short for Resilient Environments and Landscapes — and it comes from the New Jersey Department of Environmental Protection (NJDEP). Although still in the proposal stage, the rule aims to modernize the state’s approach to flooding, coastal risk, and stormwater management by using future climate and sea-level projections, not only historical data.
Here’s a clear, plain-language summary of what REAL is — and what it may mean for homeowners, buyers, and sellers across the state, especially in coastal areas like Ocean County.
What Is the REAL Regulation?
The REAL proposal is a large set of updates to existing NJDEP rules that govern:
- Flood Hazard Areas
- Coastal Zone Management
- Stormwater Regulations
- Freshwater Wetlands
The most notable change is NJDEP’s move toward projected tidal flooding and sea-level rise through the year 2100. Under the draft rules, new designations such as Inundation Risk Zones (IRZs) would be created in areas predicted to face future tidal inundation. REAL also introduces a Climate-Adjusted Flood Elevation (CAFE) — in many tidal areas, new or substantially improved structures may need to be built 4 feet above today’s FEMA base flood elevation.
These rules are not yet final, but they are moving through NJDEP’s rulemaking process with expected adoption targeted for 2026.
Potential Impact on Current Homeowners
For homeowners in coastal or low-lying neighborhoods, the REAL rules may:
- Change flood-risk classifications based on future projections.
- Affect rebuilding or renovation plans, especially if a project qualifies as a “substantial improvement.”
- Influence long-term maintenance if homes are below new elevation standards.
- Impact insurance requirements, as lenders may adjust flood-insurance expectations in newly identified risk zones.
Homeowners who already live in elevated or FEMA-compliant structures may find that their homes naturally align with stricter standards, which could become a selling advantage over time.
Potential Impact on Home Sellers
For those preparing to sell:
- Listings in newly mapped flood-risk zones may prompt more questions from buyers about elevation, insurance, and long-term risk.
- Older, lower-lying homes may face increased scrutiny during the transaction process.
- Homes already elevated or built to stronger standards may stand out as more “future-ready,” which can be highlighted in marketing.
- Disclosure discussions may become more focused on flood history, construction details, and elevation certificates.
The overall market impact will vary by neighborhood, property type, and buyer expectations.
Potential Impact on Buyers
For buyers evaluating coastal or flood-risk areas:
- Expect brokers, inspectors, and lenders to pay closer attention to elevation, drainage, and construction features.
- Some homes may require higher future maintenance or flood-insurance premiums, depending on how REAL interacts with FEMA and private insurance models.
- Buyers may see long-term value in homes already elevated or designed with resiliency features.
- Understanding local zoning, permitting, and future-risk designations will become an essential part of due diligence.
In short: REAL does not eliminate coastal living — but it may shift what “peace of mind” looks like for long-term ownership.
The Bottom Line
REAL is still a proposed rule package undergoing refinement, public comment, and analysis. But because it would bring significant updates to New Jersey’s coastal and flood-management framework, it’s important for homeowners, buyers, and sellers to stay informed.
Understanding your property’s elevation, reviewing current flood maps, and planning improvements with higher standards in mind can help position your home for the future — whatever version of the REAL regulations is ultimately adopted.
If you have questions about how REAL may affect a specific neighborhood or property type, Your Coldwell Banker Riviera Realty Agent is always available to help you navigate the latest information.
