Impact to home prices if flood maps consider climate change?
Research published today by the First Street Foundation (a research and technology nonprofit) shows that FEMA flood maps underestimate the risk to homes/businesses by 67%. While this doesn't have a direct impact on home prices today, it puts a significant amount of data in the hands of consumers which could inform (1) home purchase decisions, (2) price negotiations, and/or (3) flood insurance. I found the comparison between FEMA maps and First Street's data particularly eye-opening; especially in areas of the country that wouldn't immediately come to mind when you think of flood risk. Genuinely interesting stuff! What does BP think? What's the long-term impact? How do you mitigate for this if you're in a newly defined "high-risk" area? Does flood risk become a new line item on your deal analysis?
Source (Bloomberg article): https://www.bloomberg.com/graphics/2020-flood-risk-zone-us-map/?srnd=premium
Source (Flood Factor tool): https://floodfactor.com/