What is the impact of climate change and COVID-19 on housing valuation? What are the risks of these two major issues and how would it change the housing market?
Climate change will bring unprecedented risks including floods, fires, and winds. When this happens the cost of owning a home will definitely go up including higher insurance rates, higher taxes, and uninsured losses. As we all know as the costs go up the value of the home goes down, which makes the higher risk of mortgage default.
CNBC’s Diana Olick reports on how climate risk and the coronavirus pandemic may impact housing, and why Dave Burt, CEO of Delta Terra Capital, is shorting the sector.