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Mon Nov 11, 2019, 12:52 PM

Climate change could end mortgages as we know them

Climate change could punch a hole through the financial system by making 30-year home mortgages — the lifeblood of the American housing market — effectively unobtainable in entire regions across parts of the U.S.

That's what the future could look like without policy to address climate change, according to the latest research from the Federal Reserve Bank of San Francisco. The bank is considering these and other risks on Friday in an unprecedented conference on the economics of climate change.

For the financial sector, adapting to climate change isn't just an issue of improving their market share. "It is a function of where there will be a market at all," wrote Jesse Keenan, a scholar who studies climate adaptation, in the Fed's introduction.

The housing market doesn't yet factor in the risk of climate change, which is already affecting many areas of the U.S., including flood-prone coastal communities, agricultural regions and parts of the country vulnerable to wildfires. In California, for instance, 50,000 homeowners can't get property or casualty insurance because of the increased risk to their homes.

https://www.msn.com/en-us/money/realestate/climate-change-could-end-mortgages-as-we-know-them/ar-BBWtoDQ?li=BBnbfcN

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Arrow 10 replies Author Time Post
Reply Climate change could end mortgages as we know them (Original post)
Yo_Mama_Been_Loggin Nov 11 OP
brush Nov 11 #1
FirstLight Nov 11 #2
PasadenaTrudy Nov 11 #3
mnhtnbb Nov 11 #8
Delmette2.0 Nov 11 #10
lunatica Nov 11 #4
appalachiablue Nov 11 #5
lunatica Nov 11 #6
appalachiablue Nov 11 #7
lunatica Nov 11 #9

Response to Yo_Mama_Been_Loggin (Original post)

Mon Nov 11, 2019, 01:15 PM

1. Coastal regions and wildfire areas will be affected but won't...

people move inland and to other parts of the country?

This is already happening because of high real estate prices in California—people are fleeing to Az, NV, TX where they can get affordable mortgages—so why wouldn't it happen because of natural phenomenon caused by climate change?

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Nov 11, 2019, 02:04 PM

2. Interesting, but it went a different direction than I was thinnking...

I figured that 30 years was too long for anyone to think things would stay stable...so planning for a 30-year ANYTHING is pretty fucked...

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Nov 11, 2019, 03:33 PM

3. I'm a happy renter

At 55, childfree, no damn reason for a mortgage!

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Response to PasadenaTrudy (Reply #3)

Mon Nov 11, 2019, 04:40 PM

8. Me, too

At 68. Don't have to fix the roof, the plumbing, the HVAC, the appliances. Just put in a request on-line and they come fix whatever it is either immediately or the next day. My a/c went out this summer on a Friday night--when we were having 90 degree weather--and the maintenance guy was there in an hour. Determined the capacitor was blown. Went downstairs and brought up a new one. Fixed! If that happened to me in a condo I owned, I'd have been lucky to get an a/c guy out by the middle of the next week!

On top of that, with the changes in the tax code, I wouldn't be buying anything with a big enough mortgage--and given low interest rates--to get a tax write-off.

The numbers don't make sense at my age--given down payment size, interest rates, tax code--to own when I can rent for approximately the same monthly payment, don't have to fix anything, and don't have to tie up a lot of equity in a down payment.

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Response to PasadenaTrudy (Reply #3)

Mon Nov 11, 2019, 10:18 PM

10. I'm a new renter after owning a home for 30 years.

Well, two different homes spanning 30 years. I'm happy to be out of the yard work, snow shoveling and constant maintenance or upgrades.

I just turned 67 and I'm happy where I am.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Nov 11, 2019, 03:52 PM

4. The Big Squeeze is on.

The rapid confluence of inevitable merging disasters, most of them man made are going to crash our reality into smithereens,

Global warming is destroying weather as we know it and we’re not prepared because we’re just rearranging the chairs. At some points this will create human migrations all over the planet, including right here in the US. If there are any decent places to live the refugees will go there and end up finishing them off.

People are being replaced by robots with no thought about where or how that can make a decent living. So all that money corporations are saving themselves by not having to pay people will be for nothing when people can’t buy their products.

When people don’t have an income they don’t pay taxes so what’s a government to do? The first things to be cut will be those benefits for the now unemployed citizenship. Roads and infrastructure will be destroyed by the climate change. Health services will dwindle and cease if no one, not even the tax starved government can pay for them. So professionals such as doctors will have no work. Take it from there. The dominoes are already teetering.

We’re headed into a dystopia and we’re only rearranging those deck chairs. Drear Greta, please hurry up!

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Response to lunatica (Reply #4)

Mon Nov 11, 2019, 04:03 PM

5. These rising disasters could take years off ones life, in worry!

Same as you write- climate crisis combined with automation job displacement = mass migrations of people to refuge.

But where? and with what income and resources? In two generations most people have forgot how to use a hammer?!

Medical crises, injuries, disease and pandemics. With no income how can govts. function?

Dystopia is right..

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Response to appalachiablue (Reply #5)

Mon Nov 11, 2019, 04:20 PM

6. There are plenty of Cassandras

Let’s hope a few come along who can get the volume of attention that Trump does. We need that very badly.

It’s not like the climate will go bad only up to a point. If we do nothing there is nothing stopping the climate from continuing to go worse.

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Response to lunatica (Reply #6)

Mon Nov 11, 2019, 04:26 PM

7. Yes it's horrifying, mindblowing & I ache for younger generations

who are innocent but will bear the brunt of this future. Unless we motivate to try to modify things to reduce the severity.

Jane Fonda, Greta and the youth all over participating in climate rallies are terrific, and we need more.

Others from H.wood have been involved in anti-gas, fracking and pipeline events-- Mark Ruffalo, Darryl Hannah, Shailene Woodley.

Leo di Caprio has made at least 2 very good films on climate change for HBO in recent years..

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Response to appalachiablue (Reply #7)

Mon Nov 11, 2019, 05:02 PM

9. We need the huge megahorn of the President talking about this

That’s how big a voice we need. One who will start programs and grants as big as the Space program that JFK started. We need a national policy to fight global warming. Grants for research and to start innovative renewable industries.

I watch documentaries about this subject from other countries and all over the world all the time so I know there are lots of people doing great things. All we have to do is make it a National Policy so many organizations and innovators can get grants and funding.

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