GREY:NEVDQ - Post by User
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bogfiton Apr 19, 2021 7:16pm
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A collective threat to the U.S. economy.
A collective threat to the U.S. economy. Increasingly, experts see a collective threat to the U.S. economy. As the risks of owning a home in places affected by climate change stack up, economists and policymakers say climate-induced flight from threatened areas could shock the U.S. economy as home prices plummet, lending dries up and the local tax base diminishes in hard-hit regions.
“The degree of capital reallocation and the speed of that is going to be larger and happen more quickly than most market participants expect,” Brian Deese, President Joe Biden’s chief economic adviser, told TIME last year when he was the head of sustainable investing at BlackRock.
In the future, more homeowners could default on their mortgages, driving down prices in communities even for those whose homes are less vulnerable. Banks might stop lending, depriving the community of the capital to recover. “Potentially, we’re looking at a wave of mortgage defaults that would be similar to the subprime crisis in how it would play out,” says Michael Craig, an economist at the Department of Housing and Urban Development. As disaster unfolds, homeowners in cities across the country might start considering their own climate risk and run for the hills."
The U.S. Is on the Verge of a Climate-Driven Housing Crisis | Time
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