Today's @bopinion post answers a question someone asked me once: "If climate change is real, why aren't coastal real estate prices plummeting?"
bloomberg.com/view/articles/…
bloomberg.com/view/articles/…
There are several reasons we would NOT expect to see climate change send coastal real estate plummeting.
First, most of it won't be underwater for decades, and markets typically don't care what happens more than half a century in the future.
First, most of it won't be underwater for decades, and markets typically don't care what happens more than half a century in the future.
Also, real estate is notoriously difficult to short, therefore the price tends to be set by the most optimistic investor - or the investor least informed about climate change.
Third, national flood insurance removes some of the risk for coastal real estate owners.
BUT, all that said, we are already seeing flood risk showing up more and more in the price of coastal real estate.
AND we're seeing rich people pay an increasing premium for land at higher elevations near the coasts.
Republicans still SAY they're skeptical of climate change. But increasingly, financial markets are telling a different story.
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