How climate change has become the property market’s biggest threat

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illuminem summarises for you the essential news of the day. Read the full piece on Euronews or enjoy below:

🗞️ Driving the news: Climate change is rapidly destabilising global property markets, with new evidence showing falling home values, soaring insurance costs, and growing buyer reluctance in high-risk areas
• From California’s record wildfires to Europe’s extreme heat and floods, climate-driven hazards are reshaping where people can live — and what their homes are worth

🔭 The context: Zillow’s climate-risk tool briefly exposed how vulnerable U.S. homes have become before industry pressure pushed it off listings
• Meanwhile, Spain’s 2024 heatwaves and fires, Florida’s storm-driven insurance crisis, and the UK’s rising flood risk illustrate how climate impacts are translating into financial losses and market volatility

🌍 Why it matters for the planet: Housing lies at the core of climate resilience. As fires, floods, and extreme heat intensify, millions face devalued or uninsurable properties, undermining household wealth and threatening local economies
• These trends signal the growing cost of inaction and highlight the need for climate-smart planning, risk-based insurance reforms, and emissions cuts to prevent further market destabilisation

⏭️ What's next: Governments are beginning to respond — California now mandates wildfire-risk disclosures, insurers in the UK warn of unaffordable coverage, and Australia is quantifying climate-driven value losses
• Expect stricter building codes, expanded risk maps, and rising debate over managed retreat and resilient infrastructure

💬 One quote: “Uncertainty is rippling through the market,” says UK consultant Rachel Ollington, as buyers increasingly prioritise climate risk

📈 One stat: Each day above 35°C reduces Spanish home prices by €1.40 per m², totalling €117.6 million in losses in 2024

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