Where To Invest In Real Estate

[jyl]

Regardless of the cause or politics, it is pretty much clear that in the coming decades climate change will make part of the world harder to live in, including of the US.

Most of the reading I've done indicates that the southern part of the US will be hotter and have more extreme weather events, the lowest lying coastal areas will be more often flooded, the west will be on average hotter and drier but also with more extreme rain events. The northern areas - northwest, midwest, northeast - will be warmer with potentially more severe rain/storm events and also more flooding of low areas. Dunno about the effect on locusts and earthquakes :-)

Real estate is often a long term hold. People may live in their houses for 20, 30, 40 years. Or own commercial property for generations. So, is it time to start thinking about future climate change when picking your RE investments?

Looking at maps like this https://projects.propublica.org/climate-migration/ make me think all that low priced RE in the Midwest might be pretty interesting.

[racer]

otoh, Venice Italy is under water almost year round and people still flock there. So while low lying coastal areas could experience greater occurances of risk, living there might not be less popular.. just more expensive (and perhaps less insurable).

[masraum]

Originally Posted by racer

otoh, Venice Italy is under water almost year round and people still flock there. So while low lying coastal areas could experience greater occurances of risk, living there might not be less popular.. just more expensive (and perhaps less insurable).

There may be a specific draw to get folks to Venice. I'm not sure that much of the southern, coastal US has the same kind of draw, but maybe I'm wrong.

[masraum]

Originally Posted by jyl

Regardless of the cause or politics, it is pretty much clear that in the coming decades climate change will make part of the world harder to live in, including of the US.

Most of the reading I've done indicates that the southern part of the US will be hotter and have more extreme weather events, the lowest lying coastal areas will be more often flooded, the west will be on average hotter and drier but also with more extreme rain events. The northern areas - northwest, midwest, northeast - will be warmer with potentially more severe rain/storm events and also more flooding of low areas. Dunno about the effect on locusts and earthquakes :-)

Real estate is often a long term hold. People may live in their houses for 20, 30, 40 years. Or own commercial property for generations. So, is it time to start thinking about future climate change when picking your RE investments?

Looking at maps like this https://projects.propublica.org/climate-migration/ make me think all that low priced RE in the Midwest might be pretty interesting.

I'd be surprised if climate change does much to RE in most places.

[LWJ]

^^^I disagree.

Supposedly people are starting to factor climate into RE decisions already. I know that I have seriously discounted coastal locations due to this. I read an article a few months back saying this very thing. I believe Florida and other extreme weather locations were starting to lose their attraction of prior years.

[Skillet83]

All the liberals scream about climate change, rising water along the coasts, yet they are fleeing the liberal cities for Florida. Go figure

[sammyg2]

suburbs around major cities.

According to zillow, my home:

Home value
LAST 30 DAY CHANGE
+$14,158
Home values in (area code) have risen 3.5 % (↑) over the past 12 months.
Zillow predicts the home values in (area code) will rise 3.8% (↑) in the next year.
This home is valued 11.9% higher (↑) than the median home in (area code).

climate change is only a thing for people who want it to be, mostly in the PNW

[pavulon]

Northern MN, WI and MI...for now. I expect winter temps will be more formidable than many suspected.

[ckelly78z]

The natural heating and cooling cycles of the earth aside, I think insurance would be my main concern for at risk areas.

[sammyg2]

Fires, earthquakes, floods, hurricanes, tornados, volcanos, soo-nam-eys, there aren't many places in this country that don't live under a threat of some natural disaster.

Maybe from new Mexico up through Colorado to the Dakotas?

[MRM]

The Netherlands have been under water for centuries. I’m not sure global warming is going to have the impact on the coast that’s being predicted, even if the seas do rise.

[Captain Ahab Jr]

Bought my 2nd/retirement home with this in mind

It's on the sunny side of a glacier valley at 2300 ft, I'm so hoping for a sea view by the time I retire

[RWebb]

Originally Posted by LWJ

^^^I disagree.

Supposedly people are starting to factor climate into RE decisions already. I know that I have seriously discounted coastal locations due to this. I read an article a few months back saying this very thing. I believe Florida and other extreme weather locations were starting to lose their attraction of prior years.

Insurance companies certainly do.

I also know of one climate scientist who moved to Denmark.


I suggest Canada or Greenland for your kids - or yourself if you are in your 30s.

[RWebb]

Originally Posted by MRM

The Netherlands have been under water for centuries. I’m not sure global warming is going to have the impact on the coast that’s being predicted, even if the seas do rise.

It depends on how much people are willing to spend to deal with flooding (also how easy it is to deal with it - e.g. in coastal Louisiana it is difficult to find any solid ground to anchor flood walls).

Flood control, which the Dutch are quite good at, raises the costs for the RE that is protected.

[look 171]

I don't really any of us are going feel too much climate change in our life time. It doesn't happen over a 1-20 year period. Slight, very slightly but nothing we even really noticed. With that said John, the bigger question is, what 's the plan with this real estate is more of a concern then climate change pushing people further north. Retirement, income, commercial? I worry about policy and migration due to jobs and politics then climate itself. I think NAshville, Colorado, and some of the larger cities in Idaho or Montana are good but shorter term investments. 10 years is short enough. The other question is, are you doing this for yourself or for your kids? I sure as heck like to enjoy some of those benefits in the near future then have my kids benefit 100% from them in 20 years.

[wildthing]

REITs...

[Zeke]

What's wrong with Idaho? Lots of CA folks moving there.

[sammyg2]

I love idaho, most of the time.
But it gets real cold in winter and sometimes the bugs are unbearable.

[Cajundaddy]

Originally Posted by jyl

Regardless of the cause or politics, it is pretty much clear that in the coming decades climate change will make part of the world harder to live in, including of the US.

Most of the reading I've done indicates that the southern part of the US will be hotter and have more extreme weather events, the lowest lying coastal areas will be more often flooded, the west will be on average hotter and drier but also with more extreme rain events. The northern areas - northwest, midwest, northeast - will be warmer with potentially more severe rain/storm events and also more flooding of low areas. Dunno about the effect on locusts and earthquakes :-)

Real estate is often a long term hold. People may live in their houses for 20, 30, 40 years. Or own commercial property for generations. So, is it time to start thinking about future climate change when picking your RE investments?

Looking at maps like this https://projects.propublica.org/climate-migration/ make me think all that low priced RE in the Midwest might be pretty interesting.

Totally dependent on your timeline. Looking 20 years from now it is unlikely you will notice any difference from climate change unless you can dip your toes in the ocean from your front porch now. 100 years from now the possibilities become much broader and we could potentially get anywhere from +0.2C- +4.0C from human impact. Whether that will be benign or catastrophic depends on how much warming we get and how fast.

There are a dozen other factors with RE investment that are far more important than climate change IMO. Access to ample clean water, access to energy at reasonable cost, political stability are on my short list.

[RWebb]

people have already "noticed differences" from climate change, and quite a few are dead