New Jersey's Tougher Flood Rules Raise Housing Cost Concerns as Shore Lawmakers Call for Changes

CAPE MAY COURT HOUSE, N.J. — New Jersey's tougher flood-protection regulations are drawing renewed concern from South Jersey lawmakers who say the requirements could make it increasingly difficult for working families and year-round residents to afford homes along the Jersey Shore.

Assemblymen Antwan McClellan, R-Cape May, and Don Guardian, R-Atlantic, discussed the potential impact of the state's Resilient Environments and Landscapes regulations, commonly known as NJ PACT REAL, during a Sept. 21 appearance on Off The Press with Scott Cronick on News Talk 1400 and 92.3 WOND.

Guardian, serving as guest host, questioned whether additional elevation requirements could force homeowners to raise their living spaces another floor or install elevators, adding substantial costs to new construction and major renovations.

McClellan said he and other Cape May County officials have been working with local governments to address the regulations and their potential impact on housing affordability.

The discussion comes as New Jersey implements flood-protection standards adopted in January while the administration of Gov. Mikie Sherrill reviews the regulations and considers potential changes.

What the New Flood Rules Require

The New Jersey Department of Environmental Protection adopted the REAL regulations on Jan. 20, 2026, updating the state's coastal development, flood-hazard, freshwater wetlands and stormwater management rules.

The regulations are intended to account for projected sea-level rise and future flooding when determining where and how certain new buildings and infrastructure may be constructed.

One of the most significant changes involves the state's climate-adjusted flood elevation.

In affected tidal areas, the regulations generally add four feet to the Federal Emergency Management Agency's base flood elevation when establishing the state's new regulatory flood elevation.

That higher elevation can affect construction requirements for new buildings and certain major improvements to existing structures.

However, the regulations do not require every existing homeowner to immediately raise a house by four feet.

The requirements depend on factors including the property's location, the type of construction being proposed and whether the project is subject to state flood-hazard or coastal development regulations.

Routine maintenance and qualifying repairs may be treated differently from new construction or substantial improvements.

The regulations also expand the area subject to certain state flood-hazard development requirements, potentially affecting properties outside existing FEMA-designated flood zones.

The state says the changes are intended to account for flooding conditions that may develop over the coming decades.

Guardian Warns of Higher Construction Costs

During Monday's interview, Guardian described the potential financial consequences for homeowners who must elevate their living spaces above increasingly stringent flood levels.

He said additional elevation requirements could make some coastal homes substantially more expensive to build or renovate.

"So you go up one floor and you're absolutely safe. But we add another four feet. That means your second floor is useless too," Guardian said.

He continued:

"So you either have to walk up two flights of stairs or you got to put an elevator in every home and things like that. It's going to make it impossible for people to be able to afford to live."

Guardian's comments reflected his concerns about how the regulations could affect certain construction projects. The actual elevation required for an individual home depends on its location, existing elevation and applicable building and flood-protection standards.

The assemblyman also emphasized that housing affordability is becoming a problem for households that earn too much to qualify for traditional affordable housing programs.

He suggested that families earning between approximately $92,000 and $200,000 annually can still struggle to purchase homes in coastal communities.

Those figures were illustrative rather than a statement of the actual income limits for a particular housing program.

Guardian argued that additional construction expenses could make the situation more difficult for residents seeking to remain in Atlantic and Cape May counties.

McClellan Says Cape May County Officials Are Working Together

McClellan said he and other Cape May County lawmakers have been working with county commissioners and municipal officials on the flood regulations and broader housing concerns.

He emphasized that local mayors and council members must deal directly with the consequences of state development requirements.

McClellan said state and county officials have been discussing approaches to increase workforce and affordable housing while addressing the requirements imposed on local communities.

The assemblyman also expressed concern about the potential impact of additional regulations on residents who already face high housing costs.

Cape May County's extensive coastline, low-lying communities and limited supply of developable land make flood-protection requirements particularly consequential for future construction.

The county has formally opposed the REAL regulations, arguing that the higher standards could increase development costs and create additional obstacles to providing affordable housing.

Cape May County Has Published Maps Showing Potential Impacts

Cape May County has undertaken its own analysis of the REAL regulations, working with environmental consultants to examine how the new flood standards could affect land throughout the county.

The county's analysis includes maps comparing existing FEMA tidal flood-hazard areas with the expanded areas that could be affected by New Jersey's climate-adjusted flood elevations.

The county has also published maps identifying areas potentially vulnerable to future sea-level rise.

The maps provide a countywide overview of the potential geographic impact of the regulations, including areas where new development or substantial improvements could become subject to additional requirements.

The county's analysis raises concerns about construction costs, redevelopment opportunities, affordable housing and the availability of land for future development.

In November 2025, the Cape May County Board of County Commissioners adopted a resolution opposing the proposed REAL regulations and authorizing legal action.

County officials have called for a more incremental approach to flood-protection standards and greater consideration of the economic consequences for coastal communities.

Residents can review the county's maps, environmental analyses, resolutions and correspondence with state officials through the following official resources:

Cape May County REAL Flood-Impact Maps and Documents

https://www.capemaycountynj.gov/1694/NJPACTREAL 

Cape May County Environmental Analysis of the REAL Regulations

https://capemaycountynj.gov/DocumentCenter/View/12873/2025-08-15-Rp-NJDEP-REAL-Amended-Rule-Analysis?bidId= 

The county's maps are planning and impact-analysis tools. They should not be interpreted as a final determination of the construction requirements applicable to an individual property.

Homeowners considering construction or major renovations should consult their municipal construction office and the New Jersey DEP to determine which requirements apply.

State Says Regulations Are Needed to Address Future Flooding

The New Jersey DEP maintains that the REAL regulations are intended to protect residents, businesses and infrastructure from increasing risks associated with sea-level rise, extreme weather and chronic flooding.

The department says the updated standards account for future flood conditions rather than relying exclusively on historical flooding data.

State officials argue that incorporating higher flood-protection standards into new construction can reduce future property damage, displacement and risks to public safety.

The department also emphasizes that the regulations do not automatically require existing homeowners to elevate their properties or prohibit residents from rebuilding after storms.

The rules do not change FEMA's flood insurance maps or independently require homeowners to purchase flood insurance.

Federal flood insurance requirements remain governed by applicable federal rules and lending requirements.

However, properties outside FEMA's existing flood zones may still become subject to additional state development requirements under the expanded regulatory flood-hazard area.

The DEP's explanation of the regulations and their potential impact on property owners is available at:

https://dep.nj.gov/njreal/facts/ 

Sherrill Administration Reviewing Rules, Proposes Longer Transition Period

Although the REAL regulations were adopted in January, the Sherrill administration has initiated a review of their implementation and potential economic consequences.

In May, DEP Commissioner Ed Potosnak announced plans to extend the regulations' initial transition period by one year.

The original provisions allowed certain qualifying development applications to be reviewed under the previous regulations during a 180-day period ending July 20, 2026.

The department subsequently proposed extending that period until July 20, 2027.

The extension is intended to give state officials additional time to consult with municipalities, counties, developers, environmental organizations and other stakeholders while considering potential amendments.

The DEP has said it will continue applying the previous regulatory standards to eligible applications during the review period while the extension proposal is being considered.

The department's published information does not establish that the proposed extension has received final approval.

Gov. Sherrill said the review is intended to balance flood protection with responsible development and government efficiency.

The review could result in targeted changes to the regulations, although no specific amendments have been finalized.

Property owners and developers can review the state's current guidance on the regulations and transition provisions at:

https://dep.nj.gov/njreal/ 

What This Means for Shore Homeowners

For residents of Atlantic and Cape May counties, the impact of the REAL regulations depends largely on the type of property and whether construction or redevelopment is planned.

Owners of existing homes are not automatically required to elevate their houses simply because the regulations have been adopted.

However, someone planning to construct a new home, substantially improve an existing building or redevelop a property in a regulated flood-hazard area may face different elevation and permitting requirements.

The precise requirements depend on the property's location, the applicable flood elevation, the proposed construction and whether the project qualifies for the state's transition provisions.

For communities already facing high housing costs and limited development opportunities, the potential expense of complying with additional construction requirements remains a significant concern for local officials.

At the same time, state environmental officials maintain that stronger flood-protection standards are necessary to reduce the long-term risks and costs associated with increasingly severe coastal flooding.

The continuing review of the REAL regulations will determine whether New Jersey modifies the requirements or their implementation.

For now, homeowners and developers considering construction projects should review the county's impact maps and the state's current permitting guidance before making decisions.