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 | Mar 29, 2018
Contractors have paid $5.2 million for failing local resident employee mandate on Detroit arena
Companies were only able to meet half of the 51% local worker requirement over course of the project.
Codes and Standards | Mar 28, 2018
Washington State moving to promote mass timber construction with legislation
Bill would require all 12-story or less public buildings to be built with mass timber.
Codes and Standards | Mar 27, 2018
Los Angeles appoints its first chief design officer
Responsibility for enhancing civic architecture and urban design.
Codes and Standards | Mar 26, 2018
National Roofing Contractors Assn., releases updates to its Roof Wind Designer app
Significant changes to online wind-load calculator.
Codes and Standards | Mar 22, 2018
Global construction waste to almost double by 2025
Concerns in Houston, Minnesota over environmental impacts.
Codes and Standards | Mar 21, 2018
Cape Town, South Africa’s dire water supply crisis raises concerns in the U.S.
Los Angeles, Salt Lake City, and Miami among cities at risk for water shortages.
Codes and Standards | Mar 20, 2018
Report shows how LEED certification supports net zero energy
Whole-building energy simulation, ASHRAE compliance requirement are key factors.
Codes and Standards | Mar 15, 2018
Energy efficiency measures contributing to flat demand for power
Utilities having difficulty adjusting to new business environment.
Codes and Standards | Mar 14, 2018
New parking lighting technology is paying off, Energy Dept. says
Newer products can cut energy costs by as much as 70%.
Codes and Standards | Mar 13, 2018
OSHA delays enforcement of beryllium exposure rule
The Occupational Safety and Health Administration (OSHA) voted to delay new beryllium exposure rules until May 11.
