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
| Nov 14, 2013
Document on gypsum boards sets stage for preparing Environmental Product Declaration
The Gypsum Association has completed the development of a product category rules (PCR) document for North American gypsum boards.
| Nov 14, 2013
ISO, FLASH team up to promote stronger building codes
ISO has joined the national nonprofit Federal Alliance for Safe Homes (FLASH) to encourage communities to build disaster-resistant buildings that can withstand hurricanes, tornadoes, earthquakes, and other catastrophic events.
| Nov 6, 2013
Cost to small businesses from silica rule is raised by progressive group
The silica-dust rule from the Occupational Safety and Health Administration could put small businesses at a disadvantage on the cost of complying with the mandate, according to the Center for Progressive Reform.
| Nov 6, 2013
Uneven snow load concern prompts structural study of Minnesota college auditorium roof
The roof of the Memorial Auditorium of Concordia College in Minnesota will undergo a complete structural analysis because it was built to 1946 codes and may not be able to accommodate uneven snow loads.
| Nov 6, 2013
Dallas’s goal of carbon neutrality by 2030 advances with second phase of green codes
Dallas stands out as one of the few large cities that is enforcing a green building code, with the city aiming to be carbon neutral by 2030.
| Nov 6, 2013
Task force to examine resiliency in the face of climate change
President Barack Obama recently signed an executive order related to climate change and disaster-management efforts during severe weather events and other disasters.
| Nov 6, 2013
USGBC Northern California chapter focuses on improving indoor environments in green buildings
The Northern California branch of the U.S. Green Building Council is leading the “Building Health Initiative” that seeks to improve the indoor environment of green buildings.
| Oct 31, 2013
OSHA enacts 47-day extension for comment period on silica-exposure rule
The Occupational Safety and Health Administration has extended the public comment period on its silica-dust exposure rule by 47 days.
| Oct 31, 2013
Updates to California’s building codes take effect Jan. 1
Green-building and accessibility are the major themes of the 2013 updates to California’s construction codes that are set to take effect Jan. 1.
| Oct 31, 2013
IECC code updates include better lighting controls and new HVAC technology
The proposed new code will increase the mandatory installation of occupancy sensors and daylighting controls to many new types of spaces.
