This sounds very similar to issues around houses built in known historical flood zones.
Where this has been found to be a very expensive mistake, you are now seeing communities buy out homeowners, demolish, and leave the areas empty. Other efforts can be very expensive, but worthwhile if they're protecting enough.
For example of the latter, the Winnipeg floodway is a huge ditch around Winnipeg, Manitoba, Canada. Built in the late '50s, it diverts the Red River around the city, reconnecting further north. It was seen as a huge boondoggle when being built, but has saved much of the city repeatedly since.
Re:The Water Wars Come to the Suburbs
by throwaway193948 on Tuesday July 05, 2022 @03:05PM
(#31992359)
> in places that were never meant to host human habitation year round.
and which places on earth were meant for humans exactly?
The Governor last year: "“There’s something that is truly Californian about the wilderness and the wild and pioneering spirit,” Newsom said in an interview with The Associated Press. “I’m not advocating for no (building).” [1]
AFAIK, lawmakers are actually considering subsidizing insurance costs for exurbs in places that were never meant to host human habitation year round.
[1]: https://apnews.com/article/b17b5c9200a64466b49f3f605f9202fe