The impact of climate change on the housing market has become one of the hottest debates in the mortgage and real estate industries
The impact of climate change on the housing market has become one of the hottest debates in the mortgage and real estate industries, particularly in states like Florida and California, where hurricanes and wildfires dominate headlines. Just this year, the LA wildfires engulfed the celebrity hotspot of Pacific Palisades, causing millions upon millions of damages.
But Jim Park (pictured), a veteran mortgage professional and real estate broker with over 30 years of experience, isn’t buying into the doomsday predictions. Instead, he offers a boots-on-the-ground perspective that challenges the mainstream climate change narrative and highlights the real issues affecting homeownership, insurance, and affordability.
“I have zero issues with the so-called climate change narrative – it's not something that's on my mind,” Park said. “But I do know how to get the deals through the door to the closing table. Here in Florida, climate change really is not an issue. There’s been hurricanes in Florida for over 500 years, but it just seems more prevalent because it’s all over the news based on various narratives.
“The strongest hurricane recorded in Florida prior to 1900 was the Great Miami Hurricane of 1835, with estimated winds of 150-175 mph (Category 5) and an 18-20-foot storm surge. I don’t think anyone was talking about climate change back then.”
For Park, the real issue is whether homes are built to withstand hurricanes. As both a broker and a builder, he understands Florida’s construction standards. He told MPA that Florida has some of the strictest building codes in the US, particularly in hurricane-prone areas.
“Hurricanes have always been a reality in Florida, but strong building codes make a difference. Homes built under the latest building codes and regulations can endure winds up to 140 mph. In fact, no construction or remodeling is allowed unless the property meets these strict codes,” he said.
But that’s not all brokers are having to grapple with. Recent comments from Jerome Powell, chair of the Federal Reserve, suggested that climate change and natural disasters have made several areas unmortgageable. Park, however, is not convinced.
“There's a narrative at play," he says. "Platforms like X are exposing the truth, yet people miss out on opportunities due to fear. They hear ‘climate change’ and assume they shouldn’t buy in Florida. But Florida is continuing to grow. I can build a home here for half the cost of other coastal states, just minutes from Disney World – yet fearmongering, like Jerome Powell’s comments, holds people back.”
Rising insurance rates: Is climate change really to blame?
In the past 60 days, Park has built and sold five duplexes in Florida, with two more under construction and a waiting list of over 70 buyers. His experience gives him firsthand insight into how strict building codes reduce disaster risks. While headlines focus on rising homeowners' insurance premiums, Park sees a different reality.
"Insurance costs are a major concern, but insurers have the most accurate data," he said. "If you're near the coast – Miami, Tampa, or waterfront areas – rates are higher. But inland? My insurance in Orlando and parts of Central Florida is actually cheaper than what I paid in California, which surprises many people."
To challenge the narrative, Park shared his actual insurance invoice for one of his newly built duplexes – just $1,053 per year for full coverage. “That’s only $87 a month, not the sky-high $1,000 a month that headlines suggest,' he said. “The media paints Florida as an insurance nightmare, making it seem like coverage is unaffordable in every city. But the reality is, if you build to modern codes and choose the right location, insurance can be surprisingly reasonable.”
Park argued that rising insurance rates aren’t driven by climate change, but by aging housing stock.
“If your home was built before 2002, your insurance costs are higher because it doesn’t meet modern building codes,” he said. “The solution is to upgrade your house. Let’s focus on bringing homes up to code and lowering premiums instead of blaming climate change."
As someone who lived in California for 45 years, Park is equally skeptical about blaming climate change for the state’s devastating wildfires.
“I'm originally from California; I know that whole state like the back of my hand. Having fires in California is not new but we never had this kind of devastation when I was there as a young kid, because they had forest management every year and the water supply was abundant,” Park said.
He compared it to Florida’s hurricane preparedness: “Before a hurricane, the priority is clearing drainage systems to prevent flooding. But in California, when they stopped the preventive forest management and reduced the water supply that’s been in place for a long time, the result is inevitable destruction. Wildfires have always happened, but the devastation we see today isn’t just due to climate change – it’s neglect.”
Rather than focusing on climate change, Park believes mortgage professionals should adapt their strategies to meet current market needs and he encouraged his fellow professionals to reach out to him for to incorporate various strategies.
How mortgage professionals can adapt to market realities
“Mortgage professionals need to collaborate closely with realtors to identify properties that need upgrades and help homeowners secure funding to bring them up to code. This not only reduces insurance costs but can also motivate owners to sell," he said. "Right now, people may not be buying as much, but many homeowners need repairs. The key is shifting your approach – focus on renovation opportunities instead of just sales. That’s the strategy."
Park is adamant that the proof is in the lending.
“The US mortgage industry funds over a trillion dollars in loans each year, driving Wall Street and sustaining the housing market,” he said. “The experts responsible for analyzing and underwriting these loans operate on data, not speculation. If climate change were truly making properties unable to secure funding, lenders wouldn’t be approving loans for them.”
“I have no agenda,” Park said. “But the numbers don’t lie. Instead of letting fear dictate decisions, real estate professionals and investors should focus on the opportunities available. With the right strategy, there is always a profitable path forward.”
