Earlier quoted context omitted.
Eh, it's the same logic when people move to coastal areas that will be impacted by sea level rise. No one can imagine they'll be the ones who get screwed over, and certainly not if they're wealthy. As such, I'm not sure I would call it chilling so much as entirely predictable. The real failure is in the states and municipalities that are approving the building in the first place.
NOAA has a sea level rise viewer. https://coast.noaa.gov/slr In the Bay Area the ocean coast communities aren’t very impacted. The Bay coast is significantly impacted, Foster City is already building a levee. https://fostercitylevee.org/
In 10-15 years, the lawsuits surrounding construction of a new levee will make them take forever and cost a fortune.