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 4, 2021
Biden administration overturns Trump’s federal building design mandate
Previous order promoted classical and “traditional” architecture above others.
Codes and Standards | Mar 3, 2021
Texas freeze raises questions about risks of electrifying buildings
Gas stoves helped residents cook, boil water when power went out.
Codes and Standards | Mar 2, 2021
New Seattle building code eliminates fossil fuels for most space and water heating
Also increases on-site solar photovoltaics, reduces envelope heat loss, air leakage, and interior lighting power allowances.
Codes and Standards | Feb 25, 2021
It’s not just lumber—roofing material prices are also on the rise
Lower demand for petroleum products means less asphalt production.
Codes and Standards | Feb 23, 2021
USGBC offers education on LEED Safety First pilot credits
Four courses address COVID-19.
Codes and Standards | Feb 23, 2021
ASHRAE Epidemic Task Force releases updated Building Readiness Guide
Includes flush calculations to reduce time and energy to clear contaminants between occupancy periods.
Codes and Standards | Feb 22, 2021
Preservation of Affordable Housing develops climate resilience strategy
Includes backup power for resident and staff “area of refuge”.
Codes and Standards | Feb 18, 2021
Construction industry moves toward comprehensive U.S. BIM standard
NIBS hosts roundtable to create coordinated program to advance collaboration.
Codes and Standards | Feb 17, 2021
Construction on international sports venues is ripe for corruption
Poor planning, complex contracting, a lack of accountability and high levels of collusion to blame.
Codes and Standards | Feb 16, 2021
Feds may fund removal of some urban highways
Senate bill proposes pilot program to reknit communities.