Climate has been affecting everything around us due to increase in greenhouse gases in the atmosphere. Who would’ve thought that it can affect real estate as well? Here are a few findings on how the real estate is being affected due to climate change.
Properties going underwater.
There has been an overall increase in temperature of earth leading to the melting of polar caps. This melting has caused the sea levels to rise and thus submerging coastal areas. At this rate Zillow predicts that $882 billion worth properties will be underwater by 2100.
Here are a few prediction made by
Zillow for some metro cities.
Coastal Area Prices Dropping
Like mentioned in the above topic that the coastal properties are drowning in the near future, so are the prices of the coastal areas. The price drop has actually started effecting in many countries such as
- Florida Key where the water level is expected to rise by 15 inches in next 30 years.
- The Rhone Valley in France known one of the most wanted winemaking regions will be submerged making it inhospitable for grapevines
- Portland where there is a price drop due to frequent floods. And more such places….
Low Lying Areas Losing Value
Due to the problems faced by the increasing water levels, the sales of properties in the low lying areas have become difficult. To overcome this problem they have been dropping the prices of such location, thus creating value depreciation for low lying properties.
Forest Areas Becoming Less Preferred
The gradual increase in temperature of the earth has caused wildfires more frequent during the summers. The once preferred place is starting to become a nightmare for lots of people. Most people residing close to the forest areas are starting to move away to safer zones.
Insurance Prices Going Up
- Climate changes have not only caused an increase in wildfires, but it has also caused an increase in the number of natural disasters happening every year.
- Studies done by USGS states that with the increase in water vapor in the atmosphere, the surface will be subjected to more powerful storms and hence greater damages. This will be the leading reason for insurance companies to increase comprehensive insurance price.
- Another reason for the increase in insurance prices will be due to frequent natural disasters occurring in many places.
Higher Property Taxes
There has obviously been an increase in damages caused to infrastructure due to increased natural disasters. The government has to take the responsibility to build back the infrastructure, leading to increased property taxes.