3 Financial Signs Your City Is in a ‘Climate Crisis Real Estate Bubble’
Climate change has become a hot topic in recent years, and for good reason.
Check Out: 5 Types of Homes That Will Plummet in Value in 2024
Read More: Become a Real Estate Investor For Just $1K Using This Bezos-Backed Startup
According to NASA Science, climate change is defined as “a long-term change in the average weather patterns that have come to define Earth’s local, regional, and global climates.” The signs indicating increased climate change are all around us: glaciers are melting at a record pace, the Earth’s average temperature is increasing, and weather-related events are on the rise globally.
According to national law firm Bradley, the U.S. experienced 28 confirmed billion-dollar weather events in 2023 alone. That’s the highest number on record since the National Centers for Environmental Information began recording in 1980.
What’s one of the most vulnerable sectors of the economy slated to be affected by extreme weather events caused by climate change, you might ask? It’s real estate.
For example, the real estate bubble is closest to popping in states like California, Florida, and Louisiana. States like these are experiencing extreme wildfires, hurricanes, and coastal flooding. These events result in homeowner insurance costs that are increasingly unsustainable for the average American.
If you suspect your city is in a “climate crisis real estate bubble,” there are several signs to look for.
Here are three signs that could indicate that you live in a “climate crisis real estate bubble,” according to Bradley:
1. You Experience One or More Extreme Weather Events Per Year
If you’ve already lived through one or more extreme weather events in your city each year, you likely live in a “climate crisis real estate bubble.” Extreme weather events are costly for both the average American, as well as the government.
2. Your Homeowners’ Insurance Rates are on The Rise
If you’ve seen continual increases in your homeowners’ insurance policy over the past several years, this can also indicate that you live in a “climate crisis real estate bubble.” States with a higher incidence of extreme weather events are the most affected.
3. You’ve Had to Pay to Repair Damaged Property
If extreme weather events have resulted in major repair costs for your property, it’s an indication that you live in a “climate crisis real estate bubble.” If your insurance company’s payout doesn’t cover the full cost of the damage, you might be on the hook for some out-of-pocket repair costs.
More From GOBankingRates
I've Secretly Put Us in Serious Debt: How To Break the News to Your Spouse
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: 3 Financial Signs Your City Is in a ‘Climate Crisis Real Estate Bubble’
