New York has been one of the most aggressive states in the country in tackling climate change, from a recent adaptation bill (at the state level) to Local Law 97. However, flooding remains an issue and it's something local building owners need to keep an eye on.
In fact, a recent analysis from Climate X finds that New York City is expected to endure a projected economic loss of $215 million by 2030 from surface flooding, up from $161 million in 2020.
While Albany and NYC have taken action, Kamil Kluza, COO and co-founder of the risk data analytics company, calls the Climate Change Superfund Act, which was signed by New York Governor Kathy Hochul into law in 2024 and aims to hold greenhouse gas emitters accountable while providing funding for climate adaptation projects, "useless."
"It's very much a short-term impact," he said.
"Ultimately, the market forces competition that will penalize those who do not catch up with climate."
To achieve real change, action is needed on the federal level, according to Kluza. But the problem? The Trump administration is focused on unleashing energy and moving away from green policies.
It's More Cost-Effective To Adapt
The question then becomes, should New York property owners take action themselves to climate-proof their assets? Climate X often lays out three options to clients: do nothing, adapt or divest.
Kluza said that in 80 percent of the cases, adaptation is the best option for the property owner. Because if something happens to your assets — you'll be wishing you took action sooner.
For example, Kluza laid out a scenario: "You have two assets that your livelihood depends on, and they generate revenue for you if both of these assets get impacted, and even if they shut down for, say, 5-10 days per annum for the actual damage, and then for another 10 to 20 days to fix it, that's a month."
"That's literally 1/12 of an annum of your revenue gone."
Some things that landlords can do to avoid flooding and climate disasters are elevating the foundation of the property and raising electrical sockets, according to Kluza.
"If you wanted to hit, as I call it, the triple whammy, you can look at something that has a good ROI [that] covers a couple of hazards in one go. For example, mangrove somewhere," Kluza added.
Why New York is Prone to Flooding
Adapting, as noted before, is especially important for New York building owners. The surface flooding in the city is particularly a problem.
"The drainage in New York is pretty bad because it's old, Kluza warned.
"Effectively, surface flooding relies on a hell of a lot of rainfall pouring onto the surface that is not grass, that's pure concrete. It falls on that concrete and the water pools, because the drainage system isn't keeping up to get rid of it. So you've had cases already of subway stations being flooded, etc. It happens pretty much every year."
In New York, older infrastructure is more prone to flooding, as new properties might be safer thanks to dry or wet-proofing precautions taken, according to Kluza.
But overall, climate risks depend on a variety of circumstances. For example, the age of the building, what it's made of, the roof and the foundations, according to Kluza.
What Makes the Biggest Differences in Policy?
While the federal government hasn't been as focused on green policies, Kluza thinks that work can be done at the local level. The most powerful thing people and groups can do is lobby the regional government for change.
This includes advocating for "flood defenses, more green spaces, amber-resistant surfaces [and] asset level adaptations," said Kluza.
But for now, all property owners can do is weigh the risks of flooding and potentially invest to take precautions to protect their buildings from possible disaster — especially if they reside in New York.
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