Economy Insurance companies are withdrawing from the real estate market in southern USA

[Maciamo]

The Economist explains in a recent article how insurance companies are abandoning risky markets such as Florida and California due to the increasing incidence of extreme weather, notably hurricanes and wild fires. Homeowners are have with little choice but to use state-backed insurers of last resort, which offer less coverage for a higher price.

The article explains that:

A new report from the First Street Foundation, a non-profit research group, finds that if proper account is taken of climate risk, nearly a quarter of all properties in the continental United States are overvalued. These 39m properties represent a climate-insurance bubble inflated by government.

It's doubly ironic as more and more Americans are moving from northern to southern states just as global warming is making southern states more dangerous and less liveable. I am not surprised though considering the high percentages of Americans who don't believe that climate change is real and the even higher percentage who may accept it is real but are not concerned about it. It's like seeing lemmings heading for the cliff.

 

[Maciamo]

I bet that the Everglades National Park and most of the southern Atlantic coast of Florida will be under the sea level within 10 years. This includes Miami, which has an urban population of 6 million. Whether coastal cities are under water or not will depend on the political willingness to build dikes all along the coast like in the Netherlands. But that will completely ruin the charm of the coastline and remove the beaches, which in bound to have real estate prices collapse in return.

Anyone who sees what's coming will already be trying to sell off their properties. I suppose that there are enough climate change deniers to still find willing buyers, who will be the big losers in a decade.

I am also willing to bet that at least 250,000 homes will be destroyed by wildfires in California over the next 10 years.

 

[Jovialis]

A great many of the Americans moving to the South are African-Americans. This is actually considered a reversal of the "Great Migration" that propelled many American Blacks to Northern, industrialized cities:

A ‘New Great Migration’ is bringing Black Americans back to the South | Brookings

Beginning early in the last century and continuing for decades, Black Americans took part in a “Great Migration” that saw millions move out of the South and into other parts of the country. But over the past 50 years, that historic event has reversed, as many returned to the South in a “New...

www.brookings.edu

People move to Florida because it is cheaper. But actually a big portion of Floridian homeowners are Canadian snowbirds that go down for the winter.

Unless you live in an affluent enclave of predominately White and/or Asian outside of big northern cities, it is really no place to raise a family. I myself grew up right outside of NYC, I middle class, and my parents both worked. Nevertheless, the public education was terrible. You have violent people from lower-income communities that want to mock and drag down those around them. Only in the more affluent areas do you see the quintessential attributes of what makes the Northern cities more sophisticated. Most others are just malcontent working class people that can't be bother with non-essential higher order pursuits. Or a massively ignorant and violent underclass that is a drag on society.

 

[Maciamo]

A great many of the Americans moving to the South are African-Americans. This is actually considered a reversal of the "Great Migration" that propelled many American Blacks to Northern, industrialized cities:

Maybe, but Blacks only represent 15% of the population of Florida, less than New York State (16.8%) and much less than NYC (25%). It's especially Hispanics/Latinos that are on the rise in Florida, increasing from 16.8% in 2000 to 26.5% in 2020. Miami itself is 70% Hispanic.

 

[Jovialis]

Maybe, but Blacks only represent 15% of the population of Florida, less than New York State (16.8%) and much less than NYC (25%). It's especially Hispanics/Latinos that are on the rise in Florida, increasing from 16.8% in 2000 to 26.5% in 2020. Miami itself is 70% Hispanic.

Certainly, but also, Hispanics/Latinos are on the raise all over the United States.

US census: Hispanic and Asian-American driving US population growth:

US census: Hispanic and Asian-American driving US population growth

Newly released data points to sluggish population growth and a more multiracial US.

www.bbc.com

I would think the Asian-Americans are probably moving to more North East, and West coast cities.

 

[Jovialis]

Certainly, but also, Hispanics/Latinos are on the raise all over the United States.

US census: Hispanic and Asian-American driving US population growth:

US census: Hispanic and Asian-American driving US population growth

Newly released data points to sluggish population growth and a more multiracial US.

www.bbc.com

I would think the Asian-Americans are probably moving to more North East, and West coast cities.

I would think the Asian-Americans are probably moving to more North East, and West coast cities. The community I live in has around 40% east Asians, they rest are mostly working-class Irish and Italians that bought their homes when it was possible for middle class people who worked as mechanics, plumbers, small business owners, etc. to afford quintessential suburban homes in the North east (outside of NYC).

However this is partly facilitated by those same working-class people from the "white ethnic" groups that want to sell their homes at a premium to young affluent families from New York City.

The dream for many of these people are to sell their homes at maximum profit, and buy a home to retire in, in more affordable states like Pennsylvania, or Delaware. Some do indeed go to places like Florida.

 

[Jovialis]

While Manhattan is the beacon of culture and power in the NYC Metropolitan area, and many people do pay a very large premium to live there; the true Power Elite (CEOs, Partners, etc.) live on the periphery of the city. They live in the suburbs of New Jersey, Connecticut, and Long Island.

Something I've noticed for a long time is that while the DAs in NYC, like Alvin Bragg are super-progressive, and focused on restorative justice; the DAs in NJ, for example are willing to prosecute.

For example, you would not see the brazen mass robberies of department stores that have been happening across the nation. I think the police in NJ would actually use deadly force, instead letting these people back out on the street again the next day.

I think this is because the true power elite do not want these antics by petty criminals, and quality of life crimes to happen where they live. NYC is simply a zoo that they work in, safe in their glass towers; while they allow for the plebians to fight amongst themselves in the culture wars.