H
urricane Milton tore through Florida, ripping roofs off buildings and knocking down a construction crane at a project in Tampa. Tornadoes spawned across the state, causing widespread destruction. The storm's impact could have been much worse, as it formed as a Category 5 hurricane over the Gulf of Mexico before weakening to a Category 3 by landfall.

    The damage from Milton and Hurricane Helene, which ravaged parts of the American South, could cost up to $200 billion. Climate change is driving more frequent and extreme weather events, including wildfires in Southern California that have destroyed hundreds of structures. The Airport Fire in Orange and Riverside Counties is now 95% contained, but over half of the properties lost were homes.

    The economic impact of climate change on real estate is significant. A report by S&P and Singapore's sovereign wealth fund estimates REITs will face $110 billion in climate hazard costs over the next decade, rising to $559 billion by 2050. Climate-related property value declines, soaring insurance premiums, and insurer abandonments are also becoming more common.

    Some individuals are still willing to take risks on coastal properties despite the growing dangers. In Hawaii, a homeowner lost his oceanfront home in Oahu's North Shore due to erosion, and was subsequently sued by the state for cleanup costs. On Nantucket, some homeowners are buying properties that may be at risk of erosion, hoping to rent them out for high prices.

    However, experts warn that ignoring climate risks can have severe consequences. Coastal erosion is reshaping the map, and rising sea levels are putting communities at risk. Insurance premiums are increasing, with luxury homeowners facing particularly steep rate hikes. Insurers are fleeing Florida and California, leaving many property owners without coverage.