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limate change is intensifying erosion along the US West Coast, with powerful storms and rising sea levels threatening apartments in Pacifica, California, which are literally hanging off a cliff over the ocean.

    A new report from Singapore's GIC and S&P Global warns that climate change could cost the real estate sector up to $536 billion by mid-century, equivalent to 26% of total listed asset value. This estimate is based on even limited warming conditions, with more powerful storms, heatwaves, and rainfall expected to cause significant damage.

    Under more rapid warming scenarios, the report predicts $110 billion in real estate damage this decade and $559 billion by 2050. The authors emphasize that physical risks will increase over time due to embedded climate change, raising costs across the economy for various stakeholders.

    However, investing in solutions like floodproofing and greening roofs can offer significant investment opportunities, potentially saving up to $45 billion by mid-century. This could create a demand of $29 billion annually for climate adaptation solutions, but existing risk models often fail to incorporate their value, making it harder for investors to prioritize risk management.

    The report's findings are echoed by Swiss Re, which warned that the US is sustaining losses of $97 billion every year due to climate-fueled catastrophes. As Hurricane Helene approaches the US southeast coast, meteorologists warn of catastrophic storm surges in Florida, highlighting the urgent need for climate adaptation and mitigation measures.