Expansive soils pose a significant challenge in geotechnical engineering, especially in coastal areas. While research has mainly focused on their elastic properties, this study explores the overlooked aspect of inelastic subsidence during prolonged droughts, utilizing decade‐long GPS datasets from the University of Houston Coastal Center. Our findings reveal substantial subsidence, approximately one to two dm, during the summer droughts of 2018, 2020, 2022, and 2023, due to compaction within the upper 4 m of expansive soils. Inelastic subsidence constitutes roughly 10% of the total subsidence, resulting in step‐like permanent land elevation loss over time. Notably, drought‐induced subsidence is prominent in open‐field areas with expansive soils but is minor in built‐up areas or in non‐expansive soil regions. The occurrence of inelastic subsidence challenges traditional assessments of relative sea‐level rise and coastal flooding, emphasizing the need to consider it in coastal infrastructure planning for enhanced resilience against climate uncertainties.