Loss of habitat is the most significant impact of coastal development, as it destroys vital ecosystems such as wetlands, mangroves, and coral reefs.

Coastal development often leads to the destruction or fragmentation of natural habitats, such as wetlands, mangroves, and coral reefs, which are crucial for wildlife and biodiversity. This loss of habitat reduces available living spaces for numerous species, affecting both marine and terrestrial ecosystems. While pollution, the introduction of invasive species, and increased water temperatures are serious concerns, the direct loss of habitat due to construction, dredging, and land reclamation is the most immediate and lasting impact on coastal ecosystems. This disruption is often irreversible and has cascading effects on the entire ecosystem.