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U.S. NEWS Wednesday 22 January 2020

Reports: Flooding risks could devalue Florida real estate

Associated Press canes amount to $2 billion pected to roughly double, risk posed by moderate dynamic is not yet under-
MIAMI (AP) — Flooding due today, but that projection leading to shortages in af- flooding is common to oth- stood, nor is it implemented
to climate change-related could increase to about $3 fordable insurance cover- er geographies in the U.S. into the decision-making of
sea level rising, the ero- billion to $4.5 billion by 2050, age and real estate market and around the world," said financial institutions."
sion of natural barriers and the McKinsey report said. instability, according to the Rich Sorkin, CEO of Jupiter The short-term impacts of
long-periods of rain pose "Flooding in Florida could Jupiter Intelligence report. in a statement. "Almost flooding will be felt within
substantial economic risks not only damage housing "Ignoring, or underestimat- none of this risk is reflect- the next decade, accord-
to Florida, particularly to but also raise insurance ing, the actual economic ed in prices. Most of this ing to the Jupiter report.q

In this June 19, 2019 file photo, a postal worker returns to their
truck parked on a flooded street in Miami caused by high tides.
Associated Press

the value of South Florida costs, affect property val-
real estate, according to ues of exposed homes, and
two new reports released in turn reduce property tax
last week. revenues for communities,"
For years, Florida lawmak- the McKinsey report said.
ers mostly ignored climate Furthermore, the impact
change under then-Gov. of a 100-year-storm event
Rick Scott, who is now a could be even more dev-
U.S. Senator. But GOP Gov. astating over time, going
Ron DeSantis has taken a from $35 billion today to
more aggressive stance at between $50 billion and
tackling the issue, although $75 billion by 2050, the
environmentalists want him McKinsey report said.
to do more. A separate report from the
Based on past trends, loss- climate-risk analytics firm
es from flooding in Florida Jupiter Intelligence said the
could devalue vulnerable percentage of vulnerable
homes by $30 billion to $80 oceanfront properties af-
billion, or about 15% to 35%, fected by extreme flood-
by 2050, according to a re- ing will rise in Miami-Dade
port from McKinsey Global County from 5% in 2019 to
Institute. 98% by 2050.
Average annual losses for By 2050, annual flooding
residential real estate due damage county-wide in
to storm surge from hurri- Miami-Dade County is ex-