Climate change is a threat to many real estate properties, though more often honored in the speech while handled in the breech. Three-quarters of flood risks remain uninsured while real estate sites regularly fall short on disaster and wildfire risk ratings.
A new study in the journal Nature Climate Change says that the biggest gap may be in pricing. Researchers from the Environmental Defense Fund, Resources for the Future, Boston University, Dartmouth College, City University of New York, and the Federal Reserve documented a likely profound misperception in US housing markets. Climate change, they say, has gone largely unpriced.
The researchers cited 2020 data from First Street Foundation that estimated 14.6 million US properties face at least a 1% annual probability of flooding. Pointing to a previous paper in Nature Climate Change, they said that expected annual damages to residential properties from flooding exceed $32 billion.
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