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 | Sep 6, 2017
Seventy percent of contractors have trouble finding workers
AGC survey indicates that fewer companies may be able to bid on projects.
Codes and Standards | Sep 5, 2017
New CTBUH initiatives to investigate link between fire and façades
In wake of Grenfell tragedy, Council forms new workgroup.
Codes and Standards | Sep 1, 2017
U.S. markets with the largest hotel construction pipeline
New York has the largest hotel construction pipeline of any U.S. market.
Codes and Standards | Aug 30, 2017
Trump rescinds elevation requirements for federally funded buildings and infrastructure
Flood protection on subsidized housing, hospitals, and other public buildings rolled back.
Codes and Standards | Aug 30, 2017
Stormwater runoff mitigation pays off for some building owners
Rain gardens, green roofs, cisterns, and rainwater recycling add value.
Codes and Standards | Aug 28, 2017
Commercial properties address state carbon-reduction policies
EV charging stations, batteries, and microgrid technology are all part of effort to meet demand for cleaner power.
Codes and Standards | Aug 24, 2017
OSHA silica dust exposure enforcement begins Sept. 23
Vacuum dust collection, water-delivery systems, and respirators will be required.
Codes and Standards | Aug 18, 2017
Cool roofs may increase air pollution
California’s requirement for cool roofs on new non-residential buildings could promote smog.
Codes and Standards | Aug 17, 2017
Black market sales of OSHA training certifications plague New York City construction industry
Task force formed to get fake training cards off the streets and workers properly trained.
Codes and Standards | Aug 16, 2017
Big changes coming to Ontario building code
Proposals include solar-ready roofs, more stringent heating/cooling efficiency requirements, and graywater reuse.
