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
| Sep 2, 2014
Construction unions, housing activists press New York mayor on affordable apartment projects
A group of New York City construction unions have joined forces with affordable housing activists to pressure Mayor Bill de Blasio to require organized labor on construction of 80,000 lower-cost apartment units.
| Aug 27, 2014
Houma, La., will tap FEMA grants to raise hurricane resilience standards on public buildings
The Houma-Terrebonne Civic Center and other public buildings in Houma, La., would be renovated to withstand Category 3 hurricane winds according to a plan being considered by the Parish Council.
| Aug 27, 2014
Napa Valley assesses impact of structural retrofits on buildings after earthquake
About 30 inspection teams of two inspectors each have conducted at least quick exterior inspections of downtown Napa, Calif., buildings since a magnitude 6.0 earthquake struck the region.
| Aug 27, 2014
Liberty Building Forensics cautions hotel building teams on moisture, mold issues
Liberty Building Forensics Group, a building forensics firm warned building teams working on hotel projects to be on guard against moisture intrusion and mold.
| Aug 27, 2014
Requirement for site safety inspectors hampering construction in New York City
New York City’s regulation that requires contractors to hire independent safety inspectors for job sites is holding up projects worth millions of dollars, contractors say.
| Aug 27, 2014
Turkish government orders demolition of residential towers in Istanbul
Citing negative effects to a world heritage site, the Turkish central government has ruled that the recently completed OnaltiDokuz Residence towers must be demolished.
| Aug 21, 2014
Industry groups agree to streamline green building tool coordination and development
Major building industry groups the International Code Council (ICC), ASHRAE, the American Institute of Architects (AIA), the Illuminating Engineering Society of North America (IES), and the U.S. Green Building Council (USGBC) have agreed to collaborate on the development of Standard 189.1, the International Green Construction Code (IgCC), and the LEED green building program.
| Aug 21, 2014
Performance-based zoning: U.S. cities starting to loosen zoning regulations
Driven by New Urbanism, more than two dozen communities in the U.S. have loosened zoning restrictions in recent years.
| Aug 21, 2014
Meeting to finalize amendments to green property underwriting standard
The National Public Meeting for Resiliency + Infrastructure Consensus Underwriting Standard Amendments will take place September 16, from 9 a.m.-12p.m. at Perkins+Will, 1250 24th St. NW, Washington, DC in the World Wildlife Fund Building.
| Aug 21, 2014
American Iron and Steel Institute revises 14 test standards
The American Iron and Steel Institute (AISI) published 14 revised test standards in its S900-series.