At first sight, Carmen Borrero fell in love with a three-bedroom bungalow built in 1940 with a white picket fence and a driveway, steps away from the beach. She bought it in February for $270,000.

The house is in the New Dorp Beach area of Staten Island and sits in a flood zone on the island’s eastern shore. Ms. Borrero, a benefits administrator for a teachers’ union, said the possibility of storms and flooding was a necessary gamble to be near the sand and surf.

“If you want a house with a good view, close to the water, you know what the deal is,” she said.

Ms. Borrero is not alone in accepting that risk.

For many New Yorkers pursuing the American dream of homeownership while navigating the realities of a housing crisis, low-lying areas remain an affordable and popular option despite the mounting effects of climate change — including rising sea levels and more intense rainstorms.

There are thousands of dollars of hidden costs to consider when purchasing a home in a flood-prone area, experts said, from flood insurance to major construction projects. At the same time, there is a growing psychological toll on homeowners who have already relinquished the lower floors of their homes to water and mold, as they continue to pour money into repairs or improvements while waiting for disaster relief or buyout offers.

“I get panic attacks every time it rains,” said Amrita Bhagwandin, who has lived through six floods in Hollis, Queens, spending more than $160,000 on repairs to her house.