After the experience of a hurricane ravishing the Carolina coast, it is difficult to deny that the weather and climate have an effect on the real estate market in North Carolina. There is actually a lot of talk and research into how overall climate change will impact the market in the coming years and decades. CNBC reports that some companies want to predict the climate impact so they can lessen the negative effects and understand how investors will react to maximize their profits.
The idea of measuring the risk of climate change on the real estate market is something fairly new. Insiders are just now observing that what happens with the weather is a serious risk to real estate investments and the market as a whole. This has brought about companies who focus on forecasting these risks.
These new companies will create models and look at how different changes and influences will affect the climate to see how that impacts North Carolina. Predicting extreme weather, such as flooding and wind storms, can help a company understand its risk moving forward of weather events it cannot stop. It gives companies and investors a chance to weigh out an investment or decision for the best possible payout in the end.
Climate risk assessment is very new, so there is still a lot to learn. Companies are not likely using it to its full extent just yet, but the real estate market is getting in on the ground floor. It is very helpful to this industry where a bad storm could wipe out millions of dollars’ worth of investments. This information is for education and is not legal advice.