Itâs not just the heat. In May, yet another beachfront house in North Carolinaâs Outer Banks tumbled into the angry sea. Itâs the sixth home lost along Cape Hatteras National Seashore since 2020. Researchers say lenders are increasingly trying to pass on the risk of mortgaging coastal properties due to calamities like this. Wildfires, hurricanes, and flooding are also impacting other financial services used by homeowners. Itâs increasingly difficult to get home insurance in Minnesota, for instance, following extreme hail storms in recent years.
Big money is finally waking up to the fact that climate change is a gigantic problem. Property is the worldâs greatest store of wealth, with a total value just shy of $380 trillion. This is four times global GDP. But thereâs a new kind of toxic asset emerging in property portfolios. The number of homes in what you might call âsubprimeâ locations is rising and, in some parts of the world, property valueâlike a crumbing coastlineâis at risk of erosion. Lenders are getting noticeably more reluctant to lend against these assets. No wonder. In the Asia-Pacific region, nearly one in 10 properties owned by real estate investment trusts could be at âhigh riskâ of climate-change-related damageâparticularly those on seafronts, a report from climate risk consultancy XDI announced in May.
âSome communities are just going to become much more expensive to preserve,â says Dave Burt, founder and CEO of DeltaTerra Capital. (...)
Fascinating how Finance and Insurance Industries are forced to face the reality of Climate Change ... while so many GOP governors actively attempt to deny it.
What I don't appreciate is the cost of risk being spread among those who choose NOT to live in these areas, and having my HO Insurance go up 40% this year without any claims.
Rising sea levels, biodiversity collapse, extreme weatherâthese are the grisly horsemen of climate apocalypse. But donât forget the fretting loan officers. A study published earlier this year found that US mortgage approvals tend to dip following periods of hotter-than-normal weather. For every 1 degree Celsius that temperatures rise above average, approvals fell by nearly 1 percentâand their value by more than 6.5 percent.
Lower consumer demand was only part of the problem, according to the studyâs authors. The effect was mostly down to loan officersâ worries about climate change and what it might mean for the assets they were lending against. In other words, climate change was devaluing property before their very eyes.
Itâs not just the heat. In May, yet another beachfront house in North Carolinaâs Outer Banks tumbled into the angry sea. Itâs the sixth home lost along Cape Hatteras National Seashore since 2020. Researchers say lenders are increasingly trying to pass on the risk of mortgaging coastal properties due to calamities like this. Wildfires, hurricanes, and flooding are also impacting other financial services used by homeowners. Itâs increasingly difficult to get home insurance in Minnesota, for instance, following extreme hail storms in recent years.
Big money is finally waking up to the fact that climate change is a gigantic problem. Property is the worldâs greatest store of wealth, with a total value just shy of $380 trillion. This is four times global GDP. But thereâs a new kind of toxic asset emerging in property portfolios. The number of homes in what you might call âsubprimeâ locations is rising and, in some parts of the world, property valueâlike a crumbing coastlineâis at risk of erosion. Lenders are getting noticeably more reluctant to lend against these assets. No wonder. In the Asia-Pacific region, nearly one in 10 properties owned by real estate investment trusts could be at âhigh riskâ of climate-change-related damageâparticularly those on seafronts, a report from climate risk consultancy XDI announced in May.
âSome communities are just going to become much more expensive to preserve,â says Dave Burt, founder and CEO of DeltaTerra Capital. (...)
UN chief urges fossil fuel ad ban as heat records pile up Humans are as dangerous to Earth as the meteorite that drove dinosaurs to extinction, the UN chief said Wednesday, urging an end to fossil fuel ads after 12 months that were the hottest on record.
The Atlantic is on record to be warmer than usual, at higher risk for hurricanes this year than the gulf.
Florida now has fewer Homeowner Insurers. More counting on the fragile 'State Insurance,' that could expose Florida to massive bankruptcy.
DeSantis has just pulled a Ulysses vs Poseidon move.
They are predicting an above normal Hurricane season. Maybe if one or 2, maybe 3 take aim at FLA people will wake up. Ron probably won't, he will just run around the state in his white booties and blame the Woke.
I'm a pessimist here. I don't think FLA people will wake up if that happens. Although I do think they will feel validated in discounting climate change if it doesn't.
They are predicting an above normal Hurricane season. Maybe if one or 2, maybe 3 take aim at FLA people will wake up. Ron probably won't, he will just run around the state in his white booties and blame the Woke.
The Atlantic is on record to be warmer than usual, at higher risk for hurricanes this year than the gulf.
Florida now has fewer Homeowner Insurers. More counting on the fragile 'State Insurance,' that could expose Florida to massive bankruptcy.
DeSantis has just pulled a Ulysses vs Poseidon move.
They are predicting an above normal Hurricane season. Maybe if one or 2, maybe 3 take aim at FLA people will wake up. Ron probably won't, he will just run around the state in his white booties and blame the Woke.
They are predicting an above normal Hurricane season. Maybe if one or 2, maybe 3 take aim at FLA people will wake up. Ron probably won't, he will just run around the state in his white booties and blame the Woke.
sounds like Socialism
yep.