Locals complain about it because it's expensive, and because the resulting coastal house on concrete stilts isn't aesthetically pleasing. But it's the only rational thing to do in 2022 if you want sustainable coastal development.
In Florida, where things are more "laissez faire", things may be bit different.
This likely is making for a good deal of misaligned incentives, where public disaster relief expenses could be much less if building codes were raised in these areas, but such change is likely to be slow in coming and we should expect the status quo to continue for some time.