In 30 years, climate change is going to make much of Florida too risky for real estate lenders, according to Spencer Glendon, a senior fellow at the Woods Hole Research Center and a former partner and director of investment research at Wellington Management.
Investors have yet to pay meaningful attention to Florida’s climate risk, and continue to buy long-dated debt and are financing real estate decades into the future. This trend portends disaster for the future Florida economy, he says.
Insurance will disappear, he predicts, and future resale income will shrink. His advice is that it’s okay to rent in Florida, but it is “insane” to own or lend.
Florida’s economy could crash if banks or homebuyers worry that insurance policies in some places will become prohibitively expensive or unavailable.
As a result, the housing market would suffer, and property tax revenue would decline, leaving Florida without funds for infrastructure damaged by rising sea levels and storms.
Related Stories
Codes and Standards | Jun 11, 2018
First RFP requiring modular construction on New York City housing project issued
Part of Housing 2.0 modular construction initiative.
Codes and Standards | Jun 6, 2018
Buffalo, N.Y., contractor exec pleads guilty to fraud for bid rigging on $750 million contract
LPCiminelli stops functioning as GC in fallout from the case.
Codes and Standards | Jun 6, 2018
LEED should be updated to combat climate change
Hasn’t kept pace with urgency of problem, says clean energy investor.
Codes and Standards | Jun 5, 2018
Sports stadiums and arenas showcase sustainability features
Green venues save owners money, gain positive publicity.
Codes and Standards | Jun 4, 2018
L.A. must transition to cleaner energy, boost transit to reach sustainability goals
City aims to reduce GHGs 60% by 2035 and 80% by 2050.
Codes and Standards | Jun 4, 2018
Washington D.C.’s flattened skyline can be a virtue
Zoning ordinance that ties building heights to width of streets dictates form.
Codes and Standards | May 30, 2018
Silicon Valley cities considering taxes aimed at large employers
The aim is to offset the impact on housing costs and homelessness by tech companies.
Codes and Standards | May 30, 2018
OSHA proposes new crane operator safety rule
Would provide long-term clarity on certification requirements.
Codes and Standards | May 29, 2018
Government support helping to drive demand for green building materials
Market projects to grow 12.5% annually between 2013 and 2019.
Codes and Standards | May 24, 2018
‘Amazon tax’ could slow Seattle’s construction boom
City imposes employer head count tax to fund affordable housing.