Posted on 04/10/2023 5:09:42 AM PDT by Oldeconomybuyer
Homes constructed in flood plains, storm surge zones, regions with declining water availability, and the wildfire-prone West are overvalued by hundreds of billions of dollars, recent studies suggest, creating a housing bubble that puts the U.S. financial system at risk.
The problem will get worse as sea level rises and storms dump heavier rains and if unwise building practices continue. But increased awareness of climate risks, more realistic flood insurance pricing, and reform of government disaster policy could reduce this overvaluation — and the risk of an economically disastrous bubble burst.
Property overvaluation is particularly widespread among low-income households, which tend to be located in high-risk flood areas where land is cheaper. Poorer neighborhoods also receive fewer government dollars for flood protection infrastructure compared to wealthier neighborhoods, causing disproportionately high flood losses. If a crash in real estate values occurs, the U.S. wealth gap is likely to widen, because many households’ most valuable asset is their home.
Six actions that could help with the climate change real-estate bubble:
1) Require sellers to fully disclose flood risks when selling a property.
2) Increase climate change awareness.
3) Charge market-based insurance rates.
4) Reduce federal subsidies to live in risky places.
5) Revamp FEMA and create a National Disaster Safety Board.
6) Implement a fair and properly funded managed retreat policy.
(Excerpt) Read more at yaleclimateconnections.org ...
Climate change has nothing to do with the real estate bubble.
The only way “climate change” affects real estate is the left’s crazy policies implemented in response to their fear that the planet might, and only might, increase in temperature by 1.2 degrees over the next 50 to 100 years.
Mandated propaganda.
If more poor people live in flood prone areas, why is the solution to raise the price of flood insurance…
D.oh.
They think we are stupid.
At least the liberals among us…are.
Where the houses all just had a banner year renting nightly to the hordes of people enjoying the best snow year in recorded history?
Guess the kiddies need to get outta Connecticut a bit more often. The current bubble has to do with ludicrously low interest rates - a political decision - and the stampede out of California due to mad policies and mass illegal immigration, also political.
City Rot is causing problem with decreasing property values.
Destruction of the City States is the road to American salvation and is a good thing
PS the climate is always changing.
Today’s climate fear porn. These people are soooo pathetic. Where is Doribama, the Muslim eunuch quota man’s house again?
“Climate Change’...just the new brand name for COMMUNISM
I was wondering when it would happen (direct effect upon a market for fiscal purposes unrelated to the carbon scam).
This would be fraud. There is no other label.
Progressive leftists will grasp at every straw in order to wrest control from those who only want to be left alone to live the best life they can. They make nosy and vindictive neighbors who would burn your house down for not complying with their dictats. The deeper question is WHO do they think THEY are? Only when the general population stands up to these power hungry freaks will thing change. “Assuming one has power over others doesn’t guarantee it” L.Star
This bizarre article ignores the fact that it is the wealthy that owns oceanfront property on both coasts.
Rising sea levels would put their houses under water.
Obviously they don’t think there is an issue—just try to get a good deal on ocean front property these days.
Plymouth Rock really just kills any argument for “climate change” as it affects ocean levels. What you posted is the killer meme.
Climate Change is the rationale they will use to take over housing.
I saw on TikTok very modest homes in Burns Oregon were listed for around $750k. At one time I was considering that area.
Hey, bubbleheads, talk to Obamas about beach front property. Let me hear THEM say that they made a bad buy. Until then, shaddup.
When Obama sells his oceanfront mansions in Martha’s Vineyard and Hawaii, I’ll worry about the sea level rising.
Gee I wonder if the Obama’s were informed about the flood risk at their barely above sea level Martha’s Vinyard mansion?
Hair on fire. Hair on fire. H A I R ON F I R E!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.