Hey everyone, welcome back to Meteorology Matters.
It's great to be back.
Man, January's been a wild month for weather, hasn't it?
I mean, we've had everything,
raging wildfires in Southern California,
that crazy snowstorm across the South.
It really makes you realize, doesn't it,
just how much extreme weather can really impact us.
And we're not even talking about the human cost.
Right.
Just the financial hit from that snowstorm alone.
Yeah.
Estimated to be what, 15, maybe even $17 billion.
It really puts things into perspective, doesn't it?
The power of mother nature.
And it makes you think about,
well, how these kinds of events impact us financially
in ways we might not always consider.
Exactly.
So speaking of finances,
today we're gonna be talking about something
that hits close to home for, well, pretty much everyone,
property taxes.
Okay.
But we're gonna be looking at it with a bit of a twist.
We're gonna be focusing on how climate risks
are starting to play a larger role in all of this.
Okay, so I think most people probably,
you don't think of their property taxes
as just like tied to the value of their home.
Right.
Is there more to it than that?
There's a lot more to it.
And it's actually becoming even more complex.
Okay.
Especially with the rise in these natural disasters
we've been talking about.
For example, one of the biggest impacts we're seeing
is on insurance premiums.
Okay.
Because after a major event,
like a hurricane or a wildfire,
insurance companies reassess their risk.
And guess what?
What?
They often raise their rates,
particularly in areas that are more prone
to those kinds of events.
Yeah, we're seeing that a lot in Florida right now.
You know, some insurers are even backing out.
They're refusing to write new policies.
Oh, wow.
Especially for those waterfront properties.
Right.
You know, otherwise everybody wants.
So imagine if you can't get insurance.
Good luck getting a mortgage.
Exactly.
I mean, and even if you can secure insurance
those premiums can really skyrocket.
So that really makes home ownership
in these high risk areas well a lot more expensive.
Yeah.
It's a major factor for people to think about.
Definitely.
When they're thinking about where they might wanna buy.
Absolutely.
And then there's this whole other issue
of property reassessments after a natural disaster.
Okay.
Because if properties are damaged
they often get reassessed at a lower value.
Okay.
Which, you know, on the surface,
lower value, lower taxes.
Sounds good.
Yeah, at first.
But I'm guessing there's a catch.
There's a catch.
Because municipalities still need to generate that revenue.
So what often happens is they'll actually raise property tax
rates across the board.
Right.
To kind of compensate for those losses.
So even if your home wasn't damaged
you could still end up paying more.
Exactly.
Just because there was a disaster
that hit your community, it's a ripple effect.
Exactly, a ripple effect.
Yeah.
We saw this happen in Miami after Hurricane Irma,
for example.
Many homeowners, even in areas that weren't directly hit
ended up seeing their tax rates go up.
Just to kind of offset the losses in the harder hit areas.
Wow.
And I'm guessing it's not just hurricanes.
No, not at all.
Yeah.
The wildfires, especially out west, California,
especially, I think they're having a similar effect.
Absolutely.
Higher taxes in certain areas to cover, you know,
rebuilding, fire prevention, it adds up.
It really does.
But it's good to see that some areas
are trying to offer some relief to homeowners.
You know, the ones who are hit hard by these disasters.
Like what kind of relief?
Well, Los Angeles County, for example,
they have a program specifically for property tax
disaster relief.
And essentially, if your property value drops
by a certain amount, I think it's like $10,000 or more
because of a disaster, you can actually apply
for a temporary tax reduction.
Or you might even get a refund.
That's good.
Yeah.
Are there other examples out there?
There are.
New York State actually recently passed
a climate change property tax relief bill.
And basically, it's aimed at providing assessment relief
and even potential tax refunds or credits
to eligible property owners who've
been impacted by these sorts of events.
So it seems like there's at least some recognition out
there that this is a growing problem.
Yeah.
And some areas are trying to do something to help.
What still gets me is that people are still
moving to these areas.
I know.
It's a bit of a paradox, isn't it?
You think with all these increasing threats
from these events, hurricanes, wildfires, floods,
that people would be hesitant to move to these areas?
But we're actually seeing the opposite.
Exactly.
Like, take Florida.
I mean, it's Hurricane prone.
We all know that.
But the state still gained millions of new residents
between 2000 and 2023.
Wow.
And California's Sierra Nevada region,
I mean, same thing.
People are moving there despite the growing
threat of wildfires.
It seems like for many people that appeal of the lifestyle
and the economic opportunities often
outweigh the perceived risks.
It's like Florida, you know, sunshine, beaches.
That whole, that vibe, it's a huge draw for retirees.
Anyone seeking a warmer, more relaxed kind of lifestyle.
And in California, I mean, that booming tech industry,
the job market in the Sierra Nevada, it's pulling people in.
And they're willing to take that risk of the wildfire.
Exactly.
So it's complicated.
It is.
People are weighing the risks, I guess,
against the rewards.
So it's a personal choice, really.
But one thing that's really important to consider
is that climate change is having a direct impact
on property values in these high risk areas.
Absolutely.
And it's happening in a few different ways.
Yeah, it's multifaceted.
I mean, one of the biggest impacts
is that it's really impacting the desirability of properties
in these vulnerable areas.
I'd say.
The flood zones, hurricane prone areas, wildfire prone
areas, these properties, they're becoming less attractive
to buyers unless they have very specific features that
help to mitigate those risks.
Yeah, I know in Florida, for example,
homes that are located in FEMA designated flood zones
often require elevated foundations.
Oh, wow.
Even just to be considered for sale.
That makes sense.
So if you're thinking of getting that beachfront property,
you better make sure it can withstand rising sea levels
and potential flooding.
Otherwise, it might be tough to sell it down the line.
Right.
And buyers are becoming a lot more savvy
when it comes to these insurance costs, too.
I mean, we're seeing this in Miami, for example,
where waterfront properties, they haven't appreciated as much.
Oh, interesting.
As inland properties over, say, the past five years.
So even if you do snag that dream property,
you might end up paying a lot more for insurance.
And you might not see the same return on investment.
Exactly.
And in some cases, those insurance premiums,
they become so high that they make a property basically
unaffordable to insure, which makes it basically
impossible to sell, or even to get a mortgage.
So this is painting a really kind of a complex picture.
It is.
For anyone looking to buy or sell in these areas.
It is.
And it's not just the risk of physical damage
from a natural disaster that's affecting property values
and taxes.
It's also the increased cost of essential services.
Oh, OK.
What do you mean by that?
How do those services play into this?
Well, think about it.
If you're living in an area that's prone to disasters,
the local government often has to spend more on things
like emergency response, building and maintaining
flood control infrastructure.
Oh, yeah, yeah.
Implementing wildfire prevention measures.
I see.
So those costs, they eventually get passed along
to residents in the form of higher property taxes.
Exactly.
We saw this happen in Asheville, North Carolina,
for example, after they were hit by a major storm.
Property taxes and flood prone areas,
they went up significantly to help pay for the recovery.
So even if your home is spared during a disaster,
you could still face those higher property taxes
just because you're in a high risk area.
That's the reality of it.
It's definitely something homeowners and potential homeowners
need to be aware of when they're making decisions.
OK.
So this is a lot of information.
Where do homeowners start if they want to figure out
how much they're actually paying?
Well, your most recent property tax statement,
that's a great place to start because it should break down
all the details of your current bill.
OK.
And then for those who are maybe looking to buy a new home,
how can they find out about the property taxes?
Well, typically real estate listings
will include that information.
You can also check online.
Usually the county website, they'll often
have the annual property tax rates.
OK.
Good to know.
Yeah.
And I'm guessing that those rates, they can change?
Oh, absolutely.
Based on the local real estate market?
Yeah.
And all of those costs for the municipal services?
Right.
And especially in those higher risk areas
we were just talking about.
Exactly.
Another thing people often forget about
is that property taxes, they can also impact
your federal income taxes.
That's right.
So how does that work?
Well, under the current tax laws,
you can actually deduct up to $10,000
in state and local taxes.
OK.
Which includes property taxes on your federal income tax
return.
Oh, OK.
But here's the thing.
If your state and local taxes exceed that $10,000 limit,
you can't deduct the extra.
So that's definitely something to keep in mind.
When you're figuring out your overall tax liability.
Yeah.
And just so you know, if you're married and filing separately,
that deduction limit, it actually drops to $5,000.
Oh, wow.
OK.
So there's a lot to consider.
There is.
When it comes to property taxes.
I mean, we talked about how insurance premiums can really
surge after those disasters.
How reassessments can sometimes lead to higher tax rates.
And then the cost of those essential services
in those high risk areas, I mean,
it can all really push those property taxes up even more.
So it's becoming more and more clear
that climate change is really starting
to impact the cost of owning a home.
It absolutely is.
Especially in these vulnerable areas.
Yeah.
And it's something that both current homeowners
and potential homeowners need to be aware of.
For sure.
So before we move on, I want to remind everyone
to check out meteorologist Rob Jones on social media.
He's an amazing resource for everything weather related.
And he always has insights on how climate change is
impacting us.
You can find him on Instagram at meteorologist,
TikTok at TV meteorologist, and on YouTube,
just search at Rob Jones Hurricane.
He has fantastic YouTube channel with a whole playlist
dedicated to meteorology matters.
He's a great follow.
Yeah.
So now let's dig a little deeper into how these climate
risks are playing out in specific regions.
And for this, we'll be focusing on Florida.
OK, sounds good.
Stick with us.
Welcome back to meteorology matters.
So before the break, we were talking
about this complex relationship between climate risks
and property values and taxes.
And now we're going to kind of zero in on Florida, a state
that's really, I mean, right on the front lines
when it comes to climate change.
Yeah, it's interesting, isn't it?
Florida is known for its sunshine, beautiful beaches,
and that relaxed laid back lifestyle.
It's a big draw for retirees, really for anyone
looking for a change of pace.
Right.
But as we've been discussing, that ideal setting
comes with its own set of challenges.
Yeah.
Especially when we talk about climate risks.
Absolutely.
I mean, Florida is especially vulnerable to hurricanes,
sea level rise, flooding.
And all of these can have a huge impact on property values.
Insurance costs.
We touched on this a bit earlier.
You know, those rising insurance premiums,
particularly in Miami, for those waterfront properties.
Yeah.
And it's not just higher premiums either.
I mean, we're seeing some insurance companies
pull out of the state entirely.
Wow.
Because of the risk, which leaves homeowners with fewer
options, and then those premiums can really skyrocket.
So it's a tough spot.
It is.
And even for those homeowners who can still get insurance,
I mean, the cost is going up, and it's going up fast.
And this is partly due to the fact that, well,
hurricanes are becoming more frequent.
They're becoming more intense.
Sea levels are continuing to rise,
which puts more properties at risk.
Exfoliating.
So we're seeing this trend where people are drawn to Florida
for that coastal lifestyle.
But that same lifestyle is becoming more expensive and riskier
because of climate change.
So it's kind of like a paradox, isn't it?
It is.
It's a bit of a paradox.
And it's not just Miami either.
I mean, coastal communities all along Florida's coastline,
they're all facing similar challenges.
I mean, think about it.
As sea levels rise, erosion becomes a bigger problem.
And it's not just threatening properties.
It's also threatening vital infrastructure.
And of course, we can't forget the impact on property taxes.
Absolutely.
We were talking earlier about how local governments,
in those high risk areas, they often have to raise taxes
just to cover the costs of preparing for and recovering
from these disasters.
Exactly.
It all adds up.
Yeah, it really does.
So it seems like homeowners in Florida,
especially those in coastal areas,
they're facing this kind of this triple whammy almost.
Rising insurance costs, the potential for their property
values to actually decline, and then higher property taxes.
So it's a lot to juggle.
It'll a lot to juggle.
So what's the outlook?
I mean, is there any hope?
Are there ways to reduce these risks?
Or are we just kind of stuck with this trajectory?
Well, I think there are solutions.
But it's going to take a multifaceted approach.
I mean, it has to involve individual homeowners,
local governments, the insurance industry,
all working together.
I mean, everyone needs to be on board to tackle this.
So for homeowners, I mean, what can they do to protect
themselves?
Well, I mean, for starters, they can
invest in making their properties more resilient
to climate impacts.
OK.
You know, things like elevating their homes,
reinforcing roofs, installing hurricane-resistant windows.
These can all make a really big difference.
Those sound like pretty big investments, though.
They can be.
But I mean, these upgrades can potentially lower insurance
premiums.
They can help protect property values over the long term.
And I mean, some insurance companies
even offer discounts to homeowners who take these steps.
OK.
So that makes sense.
What about the role of local governments?
I mean, what can they do in all of this?
Well, local governments, they play a really crucial role
in adapting to climate change.
You know, they can invest in infrastructure improvements,
things like sea walls.
Right.
Better drainage systems to help protect communities
from flooding of the effects of sea level rise.
And they can also update building codes
to require more resilient construction
in new developments, you know, build smarter from the ground
up.
So we're not just reacting.
Exactly.
We're trying to get ahead of it a little bit.
Exactly.
Proactive rather than reactive.
OK.
So what about the insurance industry?
I mean, they're really kind of, they're
on the front lines of all this.
They are?
So they must be feeling the pressure.
Oh, they definitely are.
I mean, the insurance industry is really
grappling with how to accurately price risk.
In a climate that's, well, it's constantly changing.
I mean, some insurers are, they're
developing new models that factor in future climate
projections, which can help them assess risk a bit more
effectively.
And some are pushing for government-backed
re-insurance programs.
OK.
And these programs would basically
help to spread the risk and potentially make insurance
more affordable, especially in these high-risk areas.
So it sounds like there are things being done,
but it's complicated.
It is.
There are no easy answers.
No.
It makes you wonder, what about those people who can't afford
to make these adaptations?
Or maybe they're already struggling
to keep up with those rising insurance premiums, property
taxes.
I mean, how do they fit into all of this?
That's a really important point, because unfortunately,
climate change tends to exacerbate existing inequalities.
OK.
You know, lower income communities, communities of color.
They often bear a disproportionate share
of the impact from these climate risks,
because they often have fewer resources to adapt or to relocate.
So it's not just an environmental issue.
It's a social justice issue.
It is.
It's absolutely a social justice issue.
Addressing climate change effectively
means considering the social and economic aspects as well.
And it means creating policies and programs
that ensure everyone has equitable access to resources
and support, especially those who are most vulnerable
to the effects of climate change.
It's pretty heavy stuff.
It is.
But we can't afford to just ignore
these realities of climate change
and how it's impacting our lives,
especially when it comes to something
as fundamental as homeownership.
Absolutely.
I mean, it's a complex and ever-evolving issue.
But understanding those risks, working together
to find solutions, it's essential.
And it is possible we can create a more resilient,
sustainable future for Florida and beyond.
Yeah.
Well, this has been a really eye-opening conversation.
I feel like I have a much better grasp on how climate change is
really impacting us, not just in terms of the weather we see,
but our daily lives, our financial well-being.
This is a big deal.
It is a big deal.
And I'm glad you feel that way.
I mean, it is important to have these conversations
to educate ourselves, to take action.
I mean, we all have a part to play in creating
a more sustainable future.
We do.
Well, on that note, we've come to the end
of this part of our discussion on climate risks
and property taxes.
Right.
It's definitely a complex topic.
It is.
But we hope you've gained some valuable insight.
Yeah, absolutely.
Knowledge is power.
Right.
And the more we understand about these challenges,
the better equipped will be to make those informed decisions,
advocate for that positive change.
Exactly.
So before we move on, just a quick reminder
to connect with meteorologist Rob Jones on social media.
Yeah.
He's an incredible source of information
on all things weather-related.
Yeah.
You can find him on Instagram at atmediologist on TikTok
at catTVmediologist.
And on YouTube, just search at Rob Jones Hurricane.
He has a fantastic YouTube channel
with a playlist dedicated to meteorology matters.
So be sure to check that out.
He's great.
Now, let's continue to look at how climate change is
impacting us.
Stick with us.
Welcome back to meteorology matters.
You know, we've spent this episode really
kind of digging into how climate change is affecting
property values and taxes.
And especially in those vulnerable areas,
you know, like Florida, it's a lot.
But I think it's really important
that we understand all of these connections.
It really is.
It goes beyond just the financial implications, too.
There are some real ripple effects
throughout entire communities.
Right.
And you think about it.
I mean, if insurance becomes unaffordable or even
unavailable in certain areas, it could displace people
from their homes, their communities.
I mean, that's a big deal.
It is.
And you know, that displacement, it
disrupts those social networks, those local economies,
cultural identities even.
It's a really complex kind of web of interconnected issues
stemming from these climate risks.
It can feel, I don't know, just overwhelming.
I know.
Is there anything we can do, I mean, as individuals,
is there any hope that we can kind of turn this tide?
There's always hope.
I truly believe that.
I mean, the challenges are huge, yes,
but there are things we can do to both mitigate those risks
and build a more resilient future.
And I think it starts with awareness.
OK, so spreading the word.
You know, having these conversations, educating ourselves.
Yes.
Is that a good first step?
That's a really powerful first step.
I think the more people who understand these links
between climate change, property values, insurance, taxes,
the more likely we are to see real action.
From policymakers, from industry leaders,
I mean, we have to make this a priority.
OK, so what about personally?
What can we do in our own lives to make a difference?
Well, we can advocate for policies that actually
promote climate resilience.
So investing in renewable energy,
strengthening those building codes,
supporting programs that help communities adapt
to climate change.
Every single voice makes a difference.
Right.
And I guess as consumers, we can make choices, you know,
that support sustainability.
So reducing our own carbon footprint,
supporting those businesses that are environmentally conscious,
even just considering the climate risks when we're
making decisions about where to live, where to work.
All of those are really important steps
that individuals can take.
But ultimately, it really requires collective action.
At all levels, local, state, national, and global.
I mean, we have to address those root causes of climate change.
And we have to adapt to the impacts that are already here.
Yeah, it's a team effort.
It is.
We're all in this together.
Well, this conversation has been really eye-opening for me.
I feel like I have a much deeper understanding of how
climate change is really impacting us, you know,
not just the weather, but just our everyday lives
and our financial well-being.
Yeah, it's a big deal.
And I'm glad you feel that way.
It's really important to have these conversations.
To educate ourselves.
And to take action.
We all have a part to play.
We do.
So that brings us to the end of our show today,
Meteorology Matters.
Yes.
And our deep dive into climate risks and property taxes.
It's a complicated issue.
But we hope you've learned something today.
We do.
Knowledge is power.
The more we understand these challenges,
the better equipped we'll be to make those informed decisions
and really advocate for that positive change.
Exactly.
And before we sign off, I just want
to remind everyone to follow meteorologist Rob Jones
on social media.
He is a wealth of information on all things,
whether you can find one Instagram at meteorologist,
TikTok at TV meteorologist.
And on YouTube, just search at Rob Jones Hurricane.
He has a fantastic YouTube channel.
You can find a playlist there dedicated to meteorology matters.
So be sure to check it out.
Thanks for listening.