For any investor, measuring opportunity against risk is critical. And for real estate investors in particular, risk is rising exponentially in the age of climate change.
In 2018, from May through July, much of the east coast, down to Florida, saw rainfall up to three times normal levels, according to the National Oceanic and Atmospheric Administration . Nine of the top ten years for one-day extreme precipitation events have occurred since 1990, according to the Environmental Protection Agency , because as the atmosphere warms, clouds hold more water.
"Building for resilience, on a portfolio, property and citywide basis, is paramount to staying competitive. Factoring in climate risk is becoming the new normal for our industry," added Walter."Investors see climate considerations as a necessary layer of fiduciary responsibility to their stakeholders, as well as an opportunity to identify markets and assets that will benefit from a changing climate," according to the report.
That is because insurers reprice annually, and therefore do not look at long term models. FEMA flood plains are reassessed about every five years, but they still don't account for the increasingly extreme weather and heavier rainfall, that parts of the United States are now seeing. These risks include not just the destruction from individual natural disasters but business disruptions for property tenants and higher operating and capital costs caused by increased wear and tear on properties from more extreme weather.
Climate change getting worse, Obama's economy being destroyed by Trump and the Deficit.
Yes-it's climatechange' that'll crush real estate values/not collapse of SCAM erica overvalued USDollar that will cause biggest BIGFATUGLYBUBBLE in history to pop due to the financialterrorist, MORONIC FederalReserve/corrupt Govt.. Land of the FRAUD/Home of the BRAINLESS
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