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 1, 2019
$1 billion Boston hospital project to include extensive disaster resiliency features
Mass. General expansion will be designed for four days of shelter in place.
Codes and Standards | Mar 1, 2019
U.S. cities have become more dangerous for bicyclists and pedestrians
Reduced speed limits, traffic calming, better education seen as keys to improvement.
Codes and Standards | Feb 28, 2019
High-income renters now the fastest-growing housing market segment
Growth is fastest in mid-sized cities with strong economies.
Codes and Standards | Feb 27, 2019
Katerra launches software platform for ‘entire lifecycle of the building process’
Firm is accepting industry applicants to test the product.
Codes and Standards | Feb 26, 2019
AAMA updates two specifications for test methods related to seismic drift
For evaluating window wall, curtain wall and storefront systems.
Codes and Standards | Feb 22, 2019
California’s carbon reduction goals to be aided by programs to convert heating, hot water systems
Switch from propane to electricity is critical to plan.
Codes and Standards | Feb 21, 2019
Researchers develop software that can calculate potential solar energy yield at any location
Accounts for dynamic shading from trees, buildings and other structures.
Codes and Standards | Feb 20, 2019
Hospitals not making much progress in reducing their carbon footprint
Energy benchmarking survey shows flat emissions pattern over past 20 years.
Codes and Standards | Feb 15, 2019
Super Bowl stadium helps alleviate Atlanta’s flood problems
Capacity to store more than 2 million gallons of storm water on site.
Codes and Standards | Feb 14, 2019
ISO publishes first global BIM standards
Based on British standard and a publicly available standard.