Assessing Climate Risk in Home-Buying Decisions
Many prospective homebuyers are asking a critical question: How is climate change transforming the real estate landscape, and how should I factor its impacts into my home-buying decisions? Rising insurance costs in certain areas highlight the urgency of this issue. Here’s expert guidance on navigating these pressing challenges.
Understanding the Risks
According to Jesse Keenan, a professor at Tulane University specializing in the effects of climate change on real estate, it’s helpful to consider two primary categories of risk:
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Climate Shocks: These are immediate and often catastrophic events. As the use of fossil fuels continues and global temperatures rise, extreme weather events like hurricanes, floods, and wildfires are becoming more frequent and more intense. This increases the likelihood of your home being damaged or destroyed.
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Climate Stresses: These are the ongoing, cumulative effects of climate change. More frequent and severe disasters compel local governments to invest more in infrastructure improvements, such as sea walls, storm pumps, and the fortification of essential facilities. These services are funded largely through property taxes. “Taxes are only going up with climate change,” Dr. Keenan noted.
