Shoreline Hardening Bill Could Impede Beach Access, Shift Property Insurance Costs

Proposed changes in the Hawaiʻi State Legislature (2026, HB 2692) aim to lift the current ban on private shoreline hardening. This shift, intended to aid property owners facing coastal erosion, carries significant implications for public beach access and could lead to increased insurance costs for those adjacent to hardened shorelines.

The Change

The Hawaiʻi State Legislature is considering House Bill 2692, which proposes to allow limited private shoreline hardening measures. Currently, Hawaii strictly prohibits new or substantially repaired seawalls, revetments, and other "hard" armoring structures along its coasts due to concerns about coastal erosion and its impact on public beaches. This bill seeks to create exceptions, allowing property owners to implement minimal hardening to protect their land from rising sea levels and erosion. The core tension lies between protecting private property rights and preserving public access to and enjoyment of Hawaii's valuable coastal resources. Critics, including state officials, worry that widespread private hardening will lead to the static loss of beaches, effectively privatizing shorelines and diminishing public recreational spaces.

Who's Affected

Real Estate Owners and Developers:

• Permitting & Development: Property owners seeking to protect their land from erosion may gain new options, but the scope of "minimal use" and the permitting process are yet to be clearly defined. This could lead to bureaucratic complexities and potential legal challenges regarding public trust easements. Developers considering coastal projects will need to factor in potential new regulations or restrictions on hardening, which could affect project feasibility and cost.
• Property Values: While hardening offers immediate protection, it can lead to the static loss of the beach in front of the property. Over time, this can decrease the aesthetic and recreational value of the property, potentially impacting long-term marketability and resale value, especially for properties that historically relied on beach access.
• Insurance Costs: Insurers are likely to view properties with hardened shorelines differently. The risk of catastrophic failure of older structures, or increased wave action directed onto adjacent properties, could lead to higher premiums or increased deductibles for coastal properties, particularly those experiencing erosion.

Investors:

• Coastal Property Valuations: Investors in coastal real estate need to assess how this legislation, if passed, will affect the long-term valuation of properties. The trade-off between immediate erosion protection and potential loss of beach amenity value will be a critical factor. Areas with a higher likelihood of private hardening may see divergent property value trends compared to areas relying on nature-based solutions or setbacks.
• Infrastructure and Development Funds: Funds focused on real estate development or infrastructure in coastal zones should monitor legislative outcomes closely. The feasibility and cost of new construction or renovation projects could be impacted by changes in shoreline protection regulations and associated permitting.

Agriculture and Food Producers:

• Land Use Conflicts: While less directly impacted than coastal real estate, agricultural operations located in low-lying coastal areas, particularly those engaged in aquaculture or farming near the shore, could face indirect consequences. If private hardening leads to altered wave patterns or sediment transport, it could affect coastal water quality or the stability of adjacent farmlands over time. Furthermore, any increased focus on coastal adaptation might divert resources or policy attention from agricultural land preservation initiatives.

Second-Order Effects

• Increased private shoreline hardening → Diminished public beach area, altered coastal ecosystems → Reduced tourism appeal and recreational opportunities → Potential decrease in non-essential state/county government spending on coastal management.
• Potential for increased legal challenges regarding public access rights and easements → Higher legal costs for property owners and the state → Resource diversion from other critical state functions.
• Shift in development focus from setback-based adaptation to hard armoring → Potential for increased maintenance costs for private owners → Reduced state funding availability for natural infrastructure projects.

What to Do

Given the urgency of the legislative session, affected parties should take proactive steps.

For Real Estate Owners and Developers:

• Monitor Legislative Activity: Track HB 2692 and any related amendments through the Hawaiʻi State Legislature. Understand the specific definitions of "minimal use" and the permitting requirements being proposed.
• Consult Coastal Engineers and Geologists: Obtain professional assessments of your property's erosion risks and the potential efficacy and long-term consequences of various shoreline hardening methods versus nature-based solutions or managed retreat.
• Review Insurance Policies: Engage with your insurance providers to understand how potential private shoreline hardening might affect your property insurance premiums, deductibles, and coverage, especially regarding flood and storm surge.
• Engage with Stakeholders: Communicate with legislative representatives, local community groups, and coastal management experts to voice concerns and propose amendments that balance private property protection with public access and environmental sustainability.
• Consider Alternative Strategies: Explore nature-based solutions (e.g., beach nourishment, dune restoration where feasible) or stricter adherence to setback regulations if hardening proves too contentious or costly.

For Investors:

• Update Risk Assessments: Integrate potential legislative changes regarding shoreline hardening into your due diligence for coastal property investments. Analyze the long-term implications for property value and marketability.
• Scenario Planning: Develop investment scenarios based on different legislative outcomes (e.g., bill passes as-is, bill is amended, bill fails). Assess how each scenario impacts your portfolio's exposure to coastal risk.
• Diversify Coastal Holdings: If heavily invested in directly coastal properties, consider diversifying your real estate portfolio to include properties less exposed to immediate erosion and regulatory shifts.

For Agriculture and Food Producers:

• Monitor Land Use Policy: Stay informed about any broader coastal zone management policies that may emerge as a result of legislative discussions on shoreline hardening, as these could indirectly affect land use regulations or water resource management near coastal agricultural areas.
• Participate in Planning Forums: Engage with local and state planning bodies that discuss coastal adaptation and land use to ensure agricultural interests are considered.

Action Details:

Real estate owners considering private shoreline hardening should engage with legislative proponents and their insurance providers to understand the ramifications of HB 2692 before the legislative session concludes. Developers seeking to undertake new coastal projects must factor potential new regulatory frameworks for shoreline defense into their feasibility studies immediately, as permitting timelines could be affected.