About to pop? Climate-Caused extreme weather may collapse Miami Housing Bubble

By Douglas McIntyre • November 16, 2024

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Miami has become a housing bubble, and it is starting to implode. In October, a home’s median sale price was $650,000, down 7% from the same month a year ago.

READ MORE ABOUT CLIMATE THREATS TO MIAMI
Some Home Prices Still Rising
Are Temperatures Helping The City?

There is news worse than the current drop: A UBS report shows Miami has the highest risk of a real estate bubble of any city in the world.

The city has three problems. The first is that it is overbuilt. Not enough people are entering the market to buy homes, many of which are new and have never been occupied.

Storms’ toll
The second issue may be that fewer people are relocated from the northern tier of states as they see damage from severe storms and high home insurance rates.

Finally, and most important, climate change has made residents of the southern and central parts of Florida, both on the Atlantic and Gulf sides, more exposed to storms, which have become more violent and frequent. Hurricanes Helene and Milton are proof of this, and neither has made a direct hit on a major Florida city, although Milton came close to Tampa.

Because of the weather, homes have become much more expensive to insure, with insurance companies having fled the riskiest areas.