Real Estate Risks Linked to Climate Change
The article addresses the emerging issue of the "climate change real estate bubble," highlighting the potential risks faced by properties susceptible to extreme weather events. Joanna Frank, CEO of the Center for Active Design, warns that millions of properties might lose value due to exposure to extreme weather, particularly in an "extreme heat belt" expected to affect over 100 million Americans in the next 30 years.
Key points for prospective real estate buyers include:
- Local Infrastructure: Assess the ability of local infrastructure to withstand extreme conditions, as resilient areas offer more stable investments.
- Real Estate Regulations: Stay informed about local building codes and disclosure laws related to climate risks, which can impact property values and construction costs.
- Climate Risks: Thoroughly evaluate specific climate risks, using tools like FEMA flood maps and local climate projections.
- Mitigation Strategies: Understand the strategies in place to mitigate climate risks, such as shading and vegetation to counter extreme heat.
- Insurance: Be aware of the insurance landscape, noting that properties in high-risk areas often have expensive and limited coverage.
The article underscores the need for the real estate industry to adapt to climate change by prioritizing human health and resilience in property investments.