Climate-clobbered Phoenix And Tampa Real Estate Markets Slow to snail's pace

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After years of rising real estate prices, two climate change-battered markets in particular — Phoenix and Tampa — have slowed to almost nothing, both underperforming overall U.S. price increases.

According to CoreLogic, the annual price increase across America in August was up 4.3% year over year; however, Tampa was near the bottom of the list for growth, up only 1.7%, while Phoenix’s figure on the same basis was 2.1%. These contrast sharply with the market in which home prices rose the most, New York City, which jumped 8.1%

Overall, areas with extreme weather, such as the hurricanes that hit Tampa recently and scorching temperatures in Phoenix, has pushed away prospective homeowners in areas that were once super-attractive. The populations of Phoenix and Tampa exploded, and residential construction in each market surged but could not keep up with demand.

Tampa, facing the increasingly overheated Gulf of Mexico, has become part of the new hurricane alley that used to run up Florida’s east coast. Based on recent storms, the path has moved toward Tampa and into the Florida panhandle.

Meanwhile, Phoenix had 100 days in a row this summer of 100 degrees F and over. Residents exist almost exclusively indoors, in air-conditioned homes, businesses and vehicles. The overall results are ominous: Energy costs have jumped because of air conditioner use and the heat has been accompanied by drought conditions that have led city and county officials to question whether the water supply can support a continued rise in population.

“Climate migration” has become part of the dictionary for the effects of global warming, with people who moved to Phoenix and Tampa in some cases deciding to move back north. At that point, real estate price increases will not just slow. They will start to fall.