How climate change could spark the next home mortgage disaster

November 30, 2020 ☼ climate

Source: POLITICO - Link

With its lively parks and colorful bungalows, Hialeah, Fla., has been the gateway to the American middle class for thousands of Cuban immigrants.

Hialeah was the place where home ownership, an unattainable goal under the Communist regime of their homeland, became a reality. And as in many American communities — rich and poor, of every ethnic makeup — the American dream for families in Hialeah was helped along by the taxpayer-funded mortgage giants, Fannie Mae and Freddie Mac. Their willingness to purchase the loans on homes in the area provides local lenders with a steady flow of cash to invest in the community.

But behind the vibrant life in Hialeah is a troubling reality: flooding. Heavy rains overran the streets this year, last year — almost every year. And the problem is projected to get worse: Some scientists fear the city could be underwater within the lifetimes of some current residents.

Not just a mortgage disaster. I see insurance collapses as well. Food scarcity in the not too distant future is not out of the question as prime ag land becomes unusable due to drought or flooding.