Reproduce the problem:
→ Add Nav Mesh Bounds Volume
→ Add Nav Modifier Volume inside Nav Mesh Bounds volume (Notice the default working and cutting out from the nav mesh)
→ Add Custom Nav Modifier Volume by adding Blueprint, change cost and editor color inside NewNavArea blueprint.
→ It has absolutely no effect, not changing color in editor, character is marching right through the volume even though it is set to high cost.
We have a similar bug report in our system as UE-23061. I have updated the bug report to reflect that additional developers are experiencing this error. A possible workaround is to increase the default cost to 10.0, compile, then move the navmesh in editor. Does this fix it for you? You should, after this, be able to reduce the cost back to 1.0 and it should show.