New Jersey Flood Report Flags Cape May and Atlantic Counties as Highest Risk Areas

Atlantic City, NJ — A new report from Rebuild By Design identifies Cape May and Atlantic counties as New Jersey’s most vulnerable areas to flood damage, with projections showing over 70% of Cape May’s private land exposed by 2050. The study estimates nearly $278 billion in private property statewide faces increasing flood threats, contributing $3.2 billion in annual tax revenue. Insurance non-renewals have surged sharply in Cape May County, with rates tripling since 2018, signaling growing financial risk for property owners.
To address these risks, the report recommends establishing reliable funding sources for flood resilience, such as state-issued bonds or a modest surcharge on insurance policies. An estimated $9.1 billion could be raised over ten years through a 2% surcharge on property and casualty insurance premiums. The report also advocates for expanding buyout programs like New Jersey’s Blue Acres, which purchases homes in flood-prone areas to reduce exposure.
Federal support continues with a $3.2 million USDA-funded buyout for flood-prone properties in East Hanover and South Plainfield. Flood risk in Cape May County currently covers 56.1% of private land and is expected to rise to 70.6% by 2050. Atlantic County’s risk grows from 30.4% to nearly 39%. Cumberland County faces a doubling of flood-prone land from 6.4% today. Current at-risk property values are $66.1 billion in Ocean County, $55.4 billion in Cape May, and $22.8 billion in Atlantic County, with significant increases projected by mid-century. The report underscores the need for coordinated planning to protect residents and preserve New Jersey’s coastal economy.