· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:
🗞️ Driving the news: Climate-focused investors like Owen Woolcock of Climate Core Capital and David Burt of DeltaTerra Capital are pushing back against conventional real estate trends by investing in climate-resilient cities rather than climate-vulnerable hot spots
• They believe that as climate risks increase, property values in places like Florida and Arizona will suffer, while resilient areas will hold or grow in value
🔭 The context: The U.S. real estate market has been slow to price in the risks from climate change, such as sea-level rise and extreme weather
• Subsidies and government-backed programs like the National Flood Insurance Program mask some of these risks, allowing development in at-risk areas to continue largely unchecked
🌍 Why it matters for the planet: Real estate investments in climate-vulnerable regions exacerbate the risks to people and infrastructure, potentially trapping homeowners in areas that may not be resilient to increasing climate threats
• Redirecting investments toward climate-resilient cities could help alleviate pressure on vulnerable regions and promote sustainable urban planning
⏭️ What's next: Woolcock and Burt continue advocating for strategic investments in low-risk areas like Ann Arbor and Chattanooga, where infrastructure and climate resilience measures are in place
• As insurance costs and climate risks grow, markets may be forced to adjust property valuations accordingly, which could lead to abrupt shifts in real estate pricing
💬 One quote: “There’s got to be a reckoning,” - Burt. “These prices will have to adjust to accommodate the new physical reality of the property”
📈 One stat: An estimated 20% of U.S. homes could lose value within five years due to escalating climate-driven insurance costs and maintenance burdens
Click for more news covering the latest on sustainable living
