The economic impact of climate risk is frightening, and Florida is the canary in the coal mine. Climate risk has struck the state sooner and harder because of the one-two punch of geography and economy. Physical damages to Florida real estate will accelerate with the changing climate, and its subsequent financial impact could be even greater on the state’s economy.
Florida’s real-estate losses during storm surge from a 100‑year hurricane event would be $35 billion today. They are forecast to be $50 billion by 2050, according to a recent analysis conducted by KatRisk.
The First Street Foundation concluded that the devaluation of exposed homes could range from $10 billion to $30 billion in 2030 and $30 billion to $80 billion in 2050. Devaluation could be greater if climate hazards affect public infrastructure assets such as water, sewage and transportation systems, or if homeowners factor climate risk into their buying decisions.