Hey everyone and welcome back to Meteorology Matters.
You know, we usually spend our time here talking about
like the immediate impacts of weather.
Yeah.
But today we're kind of looking at something
a bit different.
Interesting.
How climate change is quietly reshaping the US
in ways you might not expect.
Yeah, that's a good point.
We're going like beyond just the weather forecast
and digging into how climate change is affecting
the US housing market and the insurance industry.
Really interesting stuff.
And before we get too deep into it,
I want to remind you to follow meteorologist Rob Jones
on Instagram, meteorologist.
Oh yeah.
On TikTok, TV meteorologist and on YouTube,
Rob Jones Hurricane.
Catch him everywhere.
Or you can also find the Meteorology Matters podcast
playlist.
Awesome, all right.
So.
It's fascinating, isn't it?
Yeah.
We're not just talking about tomorrow's high temperature
here.
Right.
This is about how climate change is setting off
this chain reaction that touches everything
from where people decide to put down roots
to how much their homes are worth.
It really is.
And one of the most significant impacts we're seeing
is the potential hit to the US housing market.
Yeah.
And a recent study suggests that we could be looking
at nearly $1.5 trillion.
Wow.
And lost value over the next 30 years.
That's trillion with a T.
It's a massive number.
And it's important to realize we're not just talking
about like individual homes losing value.
We're talking about entire communities being transformed.
Wow.
By rising insurance costs, people moving in and out,
and even how development happens in the future.
OK, so let's break down this insurance piece,
because it seems like a major factor in all of this.
Yeah.
We've seen reports that in many areas that
are prone to climate risks, insurance premiums are going up.
Oh, yeah.
Even faster than mortgage payments.
It's tough.
That has to be putting a serious strain on homeowners.
It absolutely is.
Yeah.
There are many layers to this issue,
but a key driver is that states like Florida, Texas,
and California have really borne
the brunt of natural disaster costs.
They really have.
Think about it.
Since 1980, those three states alone
have accounted for a whopping 40% of the total $2.8 trillion
in damages caused by natural disasters
across the entire US.
40%, just those three.
I know.
It's incredible.
Wow.
That kind of repeated devastation
really puts insurance companies on a tough spot.
Yeah.
And unfortunately, it leads to those skyrocketing premiums
for homeowners.
Wow, 40% for just three states.
I had no idea it was that concentrated.
Yeah.
And it creates this domino effect.
It does.
Climate risks, push insurance costs higher,
which then encourages some people to move,
and that has the potential to affect property values
in both the places they're leaving and the areas they're
going to.
Exactly.
It's a complex web of interconnected consequences.
And it could have major economic and social impacts
down the road.
And it's not just a theoretical problem, right?
We have real people whose lives are being affected
by this right now.
For instance, take the case of Jake Burnett, a resident
of Plant City, Florida.
He experienced serious flooding during Hurricane Milton,
even though he lived in flood zone X, which
is supposed to have a minuscule 0.2% chance of flooding.
You're right.
Burnett's story is a powerful reminder
that the traditional methods we've
used to assess flood risk are being challenged
by how often these extreme weather events are happening
and how intense they are.
What was once considered a 100-year flood
is occurring more frequently.
Jeez.
It seems our understanding of risk needs to catch up.
It makes you wonder if those safe stones are really
so safe anymore.
I mean, for people like Burnett, this
isn't just about statistics.
They're dealing with denied insurance claims,
mounting rebuilding costs, and a feeling of uncertainty
about the future.
Right.
It must be incredibly stressful.
It really highlights the very real human impact
of climate change.
Yeah.
These seemingly abstract concepts
have very real and challenging consequences
for individuals and communities.
It definitely reminds us that we can't get lost
in the big picture economic impacts.
We need to remember the people whose lives are being directly
affected by all of this.
Absolutely.
Their stories are essential for understanding
the true costs of climate change and why it's so important
that we address it.
And on the topic of cost, let's not forget about property taxes.
Yeah, good point.
It's another area where climate change is having an impact
that often gets overlooked.
That's a good point.
It's easy to overlook, but it's a critical piece of the puzzle.
After a natural disaster, property values
can be reassessed that often leads
to a temporary decrease in property taxes
for properties that were damaged.
So on the surface, that sounds like a good thing, right?
Yeah.
Lower taxes for people who have already suffered losses.
It can definitely offer some relief in the short time,
but here's where things get a bit complicated.
You see sometimes municipalities
need to increase overall tax rates
to compensate for the lost revenue
from those lowered assessments.
So is it kind of like robbing Peter to pay Paul?
You could say that it highlights the tough spot
local governments are in as they try
to manage the financial fallout of climate change.
It's a balancing act for sure, and this isn't just
a hypothetical problem.
Did New York state recently put a climate change property tax
relief bill into effect?
They did.
It's specifically designed to address this issue.
The bill aims to provide property owners impacted
by natural disasters with some relief on their assessments,
acknowledging the need for a more focused approach
to property tax policy in our changing climate.
That's interesting.
Sounds like we're seeing some proactive steps
to tackle these challenges, but it feels like we still
have a long way to go, don't you think?
I completely agree.
This is a complex issue with long-reaching effects,
and finding effective solutions will require
ongoing innovation and collaboration.
And it's not just about government policies.
Individual homeowners are facing some tough choices
as costs continue to climb.
Yeah.
There's this concerning trend of people going bare
choosing to go without insurance altogether.
That's right.
It's a risky move driven by those rising premiums.
We're seeing it, especially in areas like Florida,
where a good portion of homeowners
are retirees who have paid off their mortgages
and might feel they can handle the risk themselves.
But that seems like a huge gamble, doesn't it?
It is.
What happens if a major disaster strikes
and they don't have the safety net of insurance?
The potential for financial ruin is very real.
It's a reminder that even if you think you can afford
to go without insurance, the consequences of being wrong
can be devastating.
I can definitely see that.
And it's not just individual homeowners who
are being impacted, right?
We're also seeing data that shows an increase
in non-renewed insurance policies, especially
in areas susceptible to climate-related disasters.
Absolutely.
This trend isn't limited to just California and Florida
anymore.
It's spreading to other states as insurance companies
try to deal with how frequent and severe these events are
becoming.
So what does all this mean for the average person?
Good question.
Whether they're a homeowner, a renter,
or just someone concerned about the future of their community.
It means that climate change is no longer some distant threat.
It's happening now, and it's affecting our lives
in very real ways.
Understanding these impacts is crucial for making
smart decisions about our future.
One thing that really stands out to me
is that for many people, those rising insurance
premiums are the first tangible way they experience
the risks of climate change.
You're absolutely right.
They act as a wake-up call, a direct reflection
of the growing costs associated with a changing climate.
It's a real pocketbook issue for a lot of folks.
So it's not just an environmental issue anymore, is it?
It's about our homes, our finances,
and the very fabric of our communities.
Precisely.
It's a complex issue with far-reaching implications
that will only become more important as we move forward.
And this brings us to a question that I'm sure
is on a lot of people's minds.
What can we do about this?
Where do we go from here?
That's the million-dollar question.
And to be honest, there's no easy answer.
But what we can do is start by educating ourselves,
understanding the risks, and speaking up for policies
that address the root causes of climate change.
And it's not just about those big sweeping changes, right?
Small individual actions can add up, too,
whether it's reducing our own carbon footprint,
supporting sustainable businesses,
or just having conversations about these issues
with our friends and family.
Absolutely.
Every little bit helps.
And the more we can spread awareness,
the better prepared we'll be to face these challenges head on.
It's about realizing we're all in this together
and that the choices we make today
will shape the world we leave for future generations.
That's a great point.
It's a call to action for all of us
to step up, get engaged, and work
towards a more sustainable future.
I couldn't agree more.
It's time to recognize how interconnected climate change
is to our lives and work together
to create a future where we can all thrive.
Well, that's a great place to pause for now,
but don't go anywhere.
We'll be right back with more meteorology matters
after a quick break.
Sounds good.
And it's not just the financial hit
we need to consider.
Think about the emotional toll on people like Mr. Burnett.
Oh, absolutely.
Forced from their homes,
grappling with an uncertain future.
It's a deeply personal and challenging experience.
It really is.
It reminds us that we're not just talking about numbers
on a spreadsheet.
This is about real people's lives, their homes,
and their sense of security being shaken.
Exactly.
And as these climate risks intensify,
we're likely to see more and more people facing
these kinds of difficulties.
Which brings us to another concerning trend
that's been emerging what some are calling insurance deserts.
That's right.
In certain areas, especially those highly vulnerable
to climate-related disasters,
obtaining insurance is becoming incredibly difficult.
We're hearing stories of insurance companies
refusing to renew policies
or even pulling out of these regions entirely.
It's a classic case of supply and demand at play
as the risk of these events increases.
Insurance companies become more hesitant
to offer coverage in those areas.
They either hike premiums to levels
that are unaffordable for many or simply refuse
to ensure properties there at all.
So homeowners in these areas are getting hit
with a double whammy rising costs
and the possibility of not being able to get insurance at all.
It's a tough situation.
It is.
It's a catch-22 with potentially devastating consequences.
And it's not just individual homeowners who are affected.
What about the impact on entire communities?
You're right.
It extends beyond individual homeowners.
If insurance becomes unavailable or unaffordable
in a particular area, it can lead to a decline
in property values.
Oh, wow.
Making it difficult to sell homes
and potentially hindering economic development.
It seems like it could trigger a domino effect leading
to population decline, reduce tax revenue for local governments,
and a strain on essential services.
Precisely.
It's a tangled web of interconnected consequences
that underscores the ripple effect of climate change
across our society.
And it's not just coastal areas or wildfire prone regions
that are affected, right?
No, not at all.
Climate change is a global phenomenon
and its effects are being felt far and wide in communities
across the country and around the world.
So given the complexity of this insurance crisis,
what are some potential solutions?
It's a multifaceted problem.
So there's no single silver bullet solution.
It will require a multi-pronged approach.
The starters, it seems like continuing
to invest in climate adaptation and mitigation measures
is crucial to reduce the overall risk of these events.
I completely agree.
We need to strengthen our infrastructure, improve building
codes, and transition to cleaner, more sustainable energy
sources.
And alongside those efforts, we need
to explore creative insurance solutions that
can help homeowners in high-risk areas
obtain affordable and comprehensive coverage.
That's a good point.
Options like government-backed insurance programs,
risk sharing pools, or new types of policies specifically
designed to address climate change
could be part of the solution.
But it's not just about finding technical fixes.
We also need to address the social and economic inequalities
that make certain communities more vulnerable to these risks.
You're absolutely right.
We need to make sure everyone has access
to the resources and support they need
to adapt to a changing climate, regardless of their income
level race or where they live.
It's about fostering a more equitable and resilient society
where everyone has the opportunity
to thrive even in the face of climate change.
Well said.
It's a challenging but essential task.
Now shifting gears a bit, let's talk
about the trend of people going bare, choosing
to forego insurance altogether.
It's a risky strategy, but unfortunately one
that's becoming more common as insurance premiums continue
to rise.
We've seen reports that as many as 12% of homeowners
across the US are now uninsured,
and that number is even higher in some states.
It's particularly prevalent in places like Florida
where a significant portion of homeowners
are retirees who have paid off their mortgages
and may believe they can self-insure.
But as we discussed earlier, that's
a gamble that can have severe consequences.
Absolutely.
Even if you have the financial means
to rebuild after a disaster going without insurance,
exposes you to a whole host of risks.
For example, what if someone is injured on your property
and you don't have liability coverage?
Or what if the damage is so expensive
that it exceeds your ability to pay out of pocket?
These are serious risks that shouldn't be taken lightly.
And it's important to remember that insurance isn't just
about protecting your financial assets.
It's also about peace of mind, knowing
you have a safety net in case the unexpected happens.
So even though those premiums might seem high,
it's cruel to weigh the costs and benefits carefully
before deciding to go without insurance.
Exactly.
It's a decision that requires careful consideration.
Now, aside from the obvious factor of rising premiums,
what are some of the other reasons why people
are choosing to go bare?
One factor is a lack of awareness
about the risks involved.
Some homeowners simply don't fully
grasp the potential consequences of going without insurance.
They might underestimate the likelihood
of a disaster occurring or overestimate their capacity
to recover financially if one does.
That's right.
And in some cases, homeowners may
feel that insurance is simply too expensive
that they can't afford the premiums.
That's understandable, especially for people on fixed incomes
or those already struggling to make ends meet.
And in some cases, homeowners may be frustrated with the insurance
industry.
They may have had negative experiences with claims
or feel that insurance companies aren't
acting in their best interests.
That kind of experience can lead to distrust and make
homeowners more inclined to consider going without insurance.
Exactly.
And in some areas, particularly those
that haven't historically experienced major disasters,
homeowners may have a false sense of security.
They might believe they're not at risk
or that a disaster won't happen to them.
But as we've seen with climate change,
those historical patterns are no longer reliable.
Disasters are becoming more frequent and severe,
and they're affecting communities that have never
experienced them before.
So it's really unpredictable.
It is.
That's why it's so crucial for homeowners
to understand their individual risk profiles
and make informed decisions about insurance
based on the most up-to-date information available.
And if you think about going bare,
it's important to do your homework
and really understand the potential consequences.
Talk to your insurance agent or financial advisor
and make sure you have a plan in place just in case
the unexpected happens.
Because as we've seen, the risks of going without insurance
are simply too great for most homeowners.
Let's transition now to another significant issue,
the impact of climate change on property values.
This is a complex issue with many moving parts.
But the fundamental idea is that as climate risks
escalate the value of properties in affected areas
is likely to decline.
We're already seeing this play out in some coastal
communities where rising sea levels
and the threat of more intense storm surges
are making properties more vulnerable to flooding.
As those risks become more apparent,
buyers are naturally becoming more hesitant
to invest in properties that are at a high river of damage.
That makes sense.
Reduced demand can of course lead to a decline
in property values.
Exactly, and it's not just coastal areas
that are impacted, wildfires, droughts,
and other climate related hazards
can also affect property values in England areas.
So it's a widespread issue with the potential
to affect homeowners across the country.
It is, and it's not just about the financial hit.
Either a decline in property values
can have a ripple effect throughout entire communities.
It can lead to decreased tax revenue,
making it more difficult for local governments
to provide essential services.
And it can also lead to population decline
as people choose to move away from areas
that are perceived as being at high risk.
It's a complex issue with far reaching implications
that extend beyond individual homeowners.
Absolutely, it's something we need to address now
if we want to mitigate the long-term impacts
of climate change on our communities.
So what can be done to tackle this challenge?
Well, there are a number of strategies
that could be implemented.
For starters, we need to continue investing
in climate adaptation and mitigation measures.
Like strengthening infrastructure,
improving building codes,
and promoting cleaner sources of energy.
Exactly, these measures can help reduce
the overall risk of climate-related hazards,
which in turn can help protect property values.
It also seems like improving our risk assessment
and disclosure practices would be beneficial.
I agree, we need to provide homeowners
with more accurate and up-to-date information
about the climate risks specific to their properties.
That kind of transparency can help homeowners
make informed decisions about whether to invest
in mitigation measures,
or perhaps even consider selling their properties.
Right, and it can also help potential buyers
make informed decisions about where to purchase property.
In addition to transparency,
it seems like we need to explore innovative
financial mechanisms that can help homeowners
adapt to climate risks.
Absolutely, options like government-backed
insurance programs, risk sharing pools,
or green bonds that can be used
to finance adaptation projects could be valuable tools.
And it all comes back to creating
a more equitable and resilient society
where everyone has the opportunity
to adapt to a changing climate,
regardless of their financial situation background
or where they live.
You hit the nail on the head.
It means addressing the underlying social
and economic inequalities that make some communities
more vulnerable to climate risks than others.
It's a complex challenge, but it's a necessary one
if we want to create a sustainable future for everyone.
To sum it all up, it's clear that climate change's impact
on the housing market is a multifaceted issue
with profound implications.
It affects everything from insurance premiums
and property values to the very livability
of our communities.
And it's an issue we need to start addressing now
if we want to mitigate the long-term effects
of climate change?
I couldn't agree more.
The choices we make today will determine
the future of our communities of our planet.
It's a call to action for all of us to get informed,
get involved, and work towards a more sustainable future.
Let's pause for a moment to gather our thoughts.
We'll be back with more meteorology matters
after a short break.
It really is.
And we can't just focus on the challenges.
We need to recognize the opportunities
that are emerging as well.
It's inspiring to see the innovation and creativity
being directed towards addressing climate change.
You're right.
While we've been discussing some pretty serious concerns,
there's a whole wave of ingenuity
focused on finding solutions and building
more resilient communities.
Absolutely.
We're seeing new technologies and business models popping up
all the time aimed at mitigating climate risks
and protecting our communities.
For instance, I recently read about companies developing
cutting-edge building materials that
are more resistant to extreme weather events,
things like hurricane-resistant windows
or fire-resistant roofing materials.
It's amazing what they're coming up with.
And there are startups creating innovative insurance
products tailored to the unique needs of homeowners
in high-risk areas.
We're even seeing entire communities
being designed and built from the ground up
with climate resilience as a core principle.
Wow.
They're incorporating green infrastructure renewable energy
sources and thoughtful planning to create
more sustainable and adaptable living spaces.
It's truly remarkable to see the ingenuity and determination
being channeled into addressing the challenges
of climate change.
And it's a good reminder that we all
have a role to play in this effort.
It's not just up to scientists, policymakers,
or big companies to find solutions.
Exactly.
Whether you're a homeowner, a business owner,
or simply a concerned citizen, there
are things we can all do to make a difference.
We can reduce our own carbon footprint
by making more sustainable choices in our daily lives,
things like using public transportation,
conserving energy at home, or reducing our consumption.
We can also support businesses that prioritize sustainability
and advocate for policies that promote climate action.
And it's important to support the innovators
and entrepreneurs who are developing the solutions we need
to create a more sustainable future.
I couldn't agree more.
We need to foster an environment that
encourages innovation and collaboration
in addressing climate change.
It's about recognizing that we're all in this together
and that by working together, we can overcome these challenges
and build a brighter future for ourselves
and for generations to come.
I've all said, it's about embracing the challenges
ahead with a sense of optimism and a commitment
to finding solutions.
It's about using our collective knowledge, creativity,
and ingenuity to build a more sustainable and equitable world.
And it's about never losing sight of the fact
that the future is in our hands.
Right.
We have the power to shape it.
That's a powerful message to end on.
Thank you so much for joining me today
for this insightful conversation.
It's been a pleasure exploring these critical issues with you.
The pleasure was all mine.
I always enjoyed delving into these important topics with you.
And to all of our listeners out there,
thank you for tuning in to Meteorology Matters.
We hope this episode has given you
a deeper understanding of how climate change is impacting
the US housing market and insurance landscape.
We encourage you to keep learning, exploring,
and engaging in this crucial conversation.
The future is not something that simply happens to us.
It's something we create together.
So let's get out there and start building the world.
We want to see a world that is resilient, sustainable,
and equitable for all until next time.
Stay curious, stay informed, and stay engaged.
And as always, thanks for listening to Meteorology Matters.