Friday, November 18, 2016

Climate Change and Home Prices

There is an interesting article about Southern Florida in today's NYTimes.  The main point is that "climate change" is causing flooding.  The article cites residents as saying that homes are expected to be under water within five decades.   The article notes that homes sell quickly and that home prices are rising.

So, if that's the case and that much of Florida will soon be under water and uninhabitable, why are home prices rising so fast?  Would you rush to buy a home that everyone thinks will be submerged in your lifetime?  Would you expect that purchase to be a winner.

Meanwhile, in areas that are expected to be beach fronts within a few years, land prices are stagnant.  If you knew that global warming was going to make certain properties, now inland, into valuable beach fronts, do you think prices would be stagnant?

Why are prices flying in coastal areas soon to be under water?  What does the market know that the "climate change" crowd doesn't know.  Why isn't Al Gore buying up properties inland?  At current prices, they are a bargain, if Gore is correct about climate change.

Maybe these "climate change" true believers want to pay up to buy homes in areas soon to be under water, so they can be victims.   It's the only thing that makes sense.

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