Climate change and its effect on the planet have created decades of debate. However, the impact of rising global temperatures and surging storm seasons on real estate isn’t examined as often. At the Urban Land Institute’s virtual 2020 fall conference, experts from a variety of fields discussed how population shifts brought on by natural disasters and climate change can affect both residential and commercial real estate. Carlos Martin, senior fellow at the Urban Institute gave an overview of the issue of climate migration. In 2019, Martin said, 23.9 million people were displaced worldwide due to weather-related disasters. Such relocations are often meant to be temporary, Martin said, but sometimes they become permanent. Real estate markets in both “source” communities and “recipient” communities need to be prepared, Martin said. “There are opportunities for many places,” he said. “Areas losing people will have a chance to rebuild and grow healthier. Centers of receipt can gain housing and jobs.” Climate change can also affect the bottom line of commercial real estate, said Spencer Glendon, senior fellow at the Woodwell Climate Research Center. In the Oct. 15 session “Climate Change Will Wreck Your Spreadsheet,” Glendon argued that climate change could profoundly affect insurance.
Source: Realtor Magazine