How The Real Estate Market Is Effected By Climate Change

by Niz Brown 06/30/2019

Making market projections is hard to do. In real estate, it is an exact science that requires a lot of thinking and a lot of due diligence. With a lot of economic and market factors, who would have thought they must also consider climate factors when investing in the real estate market. 

It is incredible how far the world has come in terms of real estate projections. It has taken into account a lot of factors that make investing in real estate easier.

If you are environmentalist, and a smart investor at that, you probably want a glimpse of the real estate projections that consider the climate.

The following are the answers to how climate change will affect the real estate market:

  • Projections show that there would be less demand for waterfront homes. Unless you are filthy rich, you would not want your property cost to go up the roof during the rainy season. It has become a practical custom for individual home buyers to focus less on demanding a waterfront home and instead have a pool if their budget can cover it. Given that there are so many floods, hurricanes, and storms that come along the way, it has become impractical to invest in a waterfront home. It seems like a reality that real estate agents selling waterfront homes have learned to accept.
  • Most real estate professionals project higher insurance premiums for real estate properties to trend in the coming years. With climate change, insurance companies are facing higher risks, so it becomes a must for them to raise prices.
  • Projections also expect higher property taxes to come out of upcoming legislation. With the government's need to provide protection and environmental upkeep, expect even property taxes to go up because of climate change.
  • The increased property value for some homeowners is the only good thing out of the real estate projections. More houses can get more equity and homeowner should take advantage of this.

It is easier to make some changes and follow the projections of the market with a little knowledge. Individuals can always see the potential of what they are doing with the help of the right market factors. 

If you are ready to invest in climate change-ready houses and properties, contact a real estate professional today and see what an expert can do to help you. 

About the Author
Author

Niz Brown

Born in San Pedro, California, as a first generation Croatian, I graduated from California State University at Long Beach with a degree in Mathematics and Chemistry and then earned a teaching credential from San Francisco State University. In 1960 I married native San Franciscan Jim Brown. Jim, was a high school teacher before becoming the owner/chef of La Lanterna Restaurant in Kentfield from 1985-1992. He is now retired. I combined substitute teaching in Marin County with the rearing of our four children, all of whom are grown and have settled in Marin. I became intrigued with the world of homes when we acted as the general contractors in building our own home in Woodacre and another home in the San Geronimo Valley. I began to work the carpet business, and became licensed to sell real estate in 1976. I was an associate realtor with other companies before becoming an independent broker and opening my own office in downtown Larkspur in 1991.

Decades of experience in real estate, plus a passion for details, executed in a creative manner allows me to serve in an exceptional manner. I advise my clients on the preparation of a property for sale and use my skills to assist sellers in arranging for staging, clean up, etc. Then I begin the marketing by having the home professionally photographed I create a property website and create fliers and print advertising. The MLS places the listing on all media site. Then when a offer comes in, the negotiation skills and attention to the details of the transaction take over. Other agents often say "you have the nicest listings". I care deeply about the quality of service I provide. When it comes to representing buyers I am patient and tenacious. I am just as excited as the buyer when we find the right home. I love my job!

I network with agents from diverse brokerages. I operate a "bus tour" with 25 professionals from 15 different brokerages. Operating my bus tour is my way of establishing close relationships with colleagues and gives me the opportunity to serve more effectively. Real estate is a unique community of competitors who work together with love and respect and cooperate to serve our clients.

I have developed a passion for photography and painting larger-than-life images of flowers. I am a signature member of the National Watercolor Association. At close of escrow each of my clients is given a choice of one of my prints for their home.