How climate change is causing housing market chaos

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Climate change is making it harder to build houses in Arizona or to insure them in California and Florida. Here's more.

because of “historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”The “growing catastrophe exposure” refers in part to the increasing severity of wildfires in California.

Worldwide extreme weather events caused an estimated $260 billion in damage in the first 11 months of last year,. The most expensive disaster of the year was Hurricane Ian, a Category 4 hurricane that caused $50 billion to $65 billion in losses when it hit Florida’s west coast with 10-foot waves, making it the second-most expensive natural disaster in world history after 2005’s Hurricane Katrina.

. While the average annual cost of homeowner’s insurance is $1,900 a year nationwide, it’s $4,000 a year in New Orleans and about $5,000 a year in Miami because of hurricane risk. “Climate risk is driving insurer decisions like never before,” Benjamin Keys, a professor of real estate and finance at the University of Pennsylvania’s Wharton School, argued last month in. “From insurers’ perspectives, it’s ‘Everything Everywhere All at Once,’ with heightened risks of floods, droughts, wildfires and more.

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How climate change is causing housing market chaosInsurance companies and state governments across the Sun Belt are trying to prepare for or prevent future disasters caused by climate change, and the housing market is being disrupted as a result.
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