Climate Change And Its Effect On The Real Estate Market

by Joe N. Pollifrone 09/30/2019

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

Joe N. Pollifrone

For over 34 years, Joe Pollifrone has practiced real estate full-time as a licensed Real Estate Broker in California. Joe’s vast sales experience includes duplexes, tri-plexes, four-plexes, apartment buildings, land, condominiums, townhomes, fixer-uppers, estate properties, and bank-owned properties (REOs). He also is active in selling non-owner occupied properties and is well-versed in 1031 tax-deferred exchanges, property management, tenant/landlord issues, and local laws. During Joe’s career to date, he has sold in excess of $200,000,000 of real estate, including over $32,000,000 in REOs. 

Joe brought his deep experience to Sereno Group Willow Glen as a Broker Associate in 2012. He was the Sales Manager and led a top-producing office. Joe would mentor new Sereno hires, making sure that they’re comfortable with the ethos of the office, plugged into Sereno’s network of contacts, and well-versed in the technology required of today’s real estate professionals. 

Joe prides himself on his proven ability to negotiate, extensive knowledge of contracts, and securing close of escrows in a timely manner. Both he and his clients credit his success to effective communication skills, honesty, and hard work. Joe is a native of San Jose and resides in Willow Glen with his wife of twenty-seven years, Kimi, his daughters Milan and Micaela and their two Goldendoodles, Tony-Luca and Marco.