July 30, 2017

Our trillion dollar bubble in coastal properties

Think Progress - Faster sea level rise and less adaptation means the day of reckoning is nigh. Dan Kipnis, chair of Miami Beach’s Marine and Waterfront Protection Authority - who has failed to find a buyer for his Miami Beach home for nearly a year - told Bloomberg, “Nobody thinks it’s coming as fast as it is.” Florida’s Climate Denial Could Cause Catastrophic Recession

But this is not just South Florida’s problem. The entire country is facing a trillion-dollar bubble in coastal property values. This Hindenburg has been held aloft by U.S. taxpayers in the form of the National Flood Insurance Program.

A 2014 Reuters analysis of this “slow-motion disaster” calculated there’s almost $1.25 trillion in coastal property being covered at below-market rates.

When sellers outnumber buyers, and banks become reluctant to write 30-year mortgages for doomed property, and insurance rates soar, then the coastal property bubble will slow, peak, and crash.

3 comments:

Anonymous said...

humans show no sign of placing proper importance on justice and therefore placing a just cap on personal fortunes in time to save their species and planet

Anonymous said...

Reduce the price.

greg gerritt said...

I regularly remind Rhode Islanders that we need to start an orderly retreat fromthe coast now, but the rich criminals who run the state still think real estate speculation is how economies are run.