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
Resiliency | Jan 13, 2016
LEED credits on resiliency expected to influence future of building design
Post-disaster survivability is a key goal.
Codes and Standards | Jan 12, 2016
Batteries are the next step in raising sustainability standards
Battery technology will reduce electricity costs and promote a more stable, flexible grid.
Codes and Standards | Jan 4, 2016
Denver broadens its use of design reviews as construction booms
Support strong, but some wary of giving more say to review boards.
Codes and Standards | Dec 23, 2015
International Code Council approves updates based on NIST study of Joplin, Mo. tornado
Applies to schools and other high occupancy buildings.
Codes and Standards | Dec 21, 2015
Changing building codes to protect against mass shootings at odds with other safety measures
Fire and other emergencies require getting people out quickly, not locking down sections.
Codes and Standards | Dec 18, 2015
Codes should be updated to reflect lessons learned from recent extreme weather events
More can be done to boost resiliency to flooding, extended power outages.
Codes and Standards | Dec 13, 2015
Los Angeles launches ‘Drop 100′ campaign to reduce water use in commercial buildings
Goal is to save 100 million gallons annually.
Codes and Standards | Dec 1, 2015
More than 50 design, construction, and real estate firms urge action on climate change
Call for policymakers to move on one of the ‘greatest economic opportunities of the 21st Century’
Codes and Standards | Oct 26, 2015
Chicago suburb considers bird collision deterrent requirement on all new buildings
The rule would mandate that new commercial, multifamily structures comply with LEED pilot program.
Codes and Standards | Oct 16, 2015
Anchorage may raise building height restrictions that would block precious winter sunlight
Controversial measure is part of plan to spur development.
