Coastal dunes form valuable ecosystems that provide flood protection, drinking water, and high biodiversity worldwide. Although their functioning hinges on habitat zonation along >km-scale sea-to-land gradients, infrastructure development progressively squeezes natural dune ecosystems into a narrow strip. Yet it remains unknown how much undisturbed coastal width is required to support the diverse suites of habitats and species assemblages found in natural dune systems. Here, we investigate plant and habitat diversity in 614 plots along 47 sea-to-land transects in the southeastern USA and the Netherlands. We discover a linear relation between habitat diversity and species richness, indicating that species-rich dunes require diverse habitat assemblages. Moreover, we find that both plant and habitat diversity nonlinearly depend on coastal width, with cumulative plant diversity reaching ∼75% of its potential at 800 and 1,800 m widths in the southeastern USA and the Netherlands, respectively. Alarmingly, dune areas are narrower than these widths along 79% and 66% of southeastern USA and Dutch coastlines, highlighting that lack of space compromises biodiversity along the majority of coastlines. Finally, analyses of management measures along the transects reveal that strategic interventions can, at least in part, mitigate biodiversity losses from infrastructure encroachment. As coastal squeeze-i.e., combined losses from infrastructure and sea level rise-is a global phenomenon, our results suggest that it threatens biodiversity in dune ecosystems worldwide. We argue that the establishment or expansion of nature reserves may be vital for conserving wide dune systems and that targeted management measures can help maintain biodiversity where squeeze cannot be alleviated.