From A Guest Blogger: Could Catastrophic Climate Change Lead To Falling Real Estate Values?

(Note: Why not ask the owner of the place pictured here, whose pool is normally 8 – 10 feet above sea level?  -ed)

When you are searching for prime real estate property in the United States, you will certainly not lack for opportunities to discover plenty of them. Many of the world’s finest and most renowned property developers are located here. For example, a cursory online search for “louis ceruzzi properties” will quickly yield plenty of excellent locations all across the country.

Will Climate Change Affect The United States In Any Way?

However, particularly along the East and West coastal regions of the United States, there is a growing concern that catastrophic climate change could play a crucial role in potentially downgrading property values. These concerns may well be far from confirmed, at least according to many leading spokespersons for the real estate industry, but they do seem to have registered with many prospective home buyers.

As mentioned above, the rate of catastrophic climate change proceeding in all areas of the country will be particularly advanced in and around the coastal regions. Scientists are predicting the general sea level along the East and West coasts will rise from 3 to 6 feet by the year 2100. This could have particularly nasty consequences, not only for the ecosystem of these regions, but also for the general value of the properties that are rented and owned in some of the most closely populated areas of the United States.

Are Steps Being Taken To Limit The Damage Caused By Climate Change?

Leading players in the industry are quick to assure their potential clients that the prospect of catastrophic climate change in the world is vastly overrated. However, even these big wheels of the global real estate market are beginning to take much needed precautions to stave off the effects that climate change might have on the market.

For example, many property developers and builders are insisting on their creations being built according to stringent new codes that emphasize sustainability and durability in the face of floods, earthquakes, fires, and other natural disasters.

Although no major company spokesperson has yet been willing to go on record confirming it, the general suspicion among observers of the international real estate industry is that these measures are being adopted in a bid to build properties that will be as close as possible to immune from the effects of hurricanes, cyclones, and other devastating incidences of climate change driven catastrophes.

Is Climate Change A Factor In Potentially Downgrading Property Values?

There is a simple reason why such measures should be undertaken by the corporate heads of the international real estate and property development industry: Damage and destruction caused by catastrophic climate change is bad for business. No one wants to be on the hook for building properties that fail their owners in times of emergency.

As a result, real estate developers are going well out of their way to assure their potential clients that the new homes that are being built will survive the advent of any number of climate change driven disasters. It is imperative that they do so, in order to limit the instances of property value deflation that are bound to arise if the public should lose confidence in the safety and durability of such properties. This is an issue that will be closely monitored by industry watchdogs for years to come.