Global warming is coming for your home

Facing the #ClimateImpact on #Housing: A $25trn Challenge Key Takeaways:

• Climate change may reduce global housing values by 9% by 2050.
• Government and homeowner dilemma: Who pays for climate resilience?
• Insurance costs rising, but preventive investment lagging behind.

Further Insights

1. Global Risk: Approximately a tenth of the world's residential properties are vulnerable to climate change, facing threats from extreme weather to policy changes aimed at emission reduction.

2. Economic Impact: Climate-related damages and initiatives to combat climate change could erase $25 trillion from global housing values by 2050.

3. Insurance Bubble: A potential 'climate-insurance bubble' threatens to increase home insurance costs significantly, possibly leading to a decline in house prices in affected areas.

4. Funding Protection: Challenges in funding for protective measures and home modifications to address climate risks raise questions about the financial responsibility of homeowners versus governments.

5. Policy Paradox: Policymakers face a dilemma in balancing between incentivizing resilience investments and avoiding the trap of subsidizing unsustainable living and construction practices in vulnerable locations.

Closing Thoughts: With the looming $25 trillion threat to global housing from climate change, the need for clear, collaborative approaches to climate resilience is urgent. How can we align the interests of governments, homeowners, and insurers to navigate this challenge effectively?