What's Happening?
The financial sector is creating new analytical tools to better assess the value of resilience in multifamily housing. This development comes as severe weather risks prompt developers to construct more resilient homes. Despite significant investments
in resilience, these do not always reflect in property valuations or insurance underwriting. The industry aims to align resilience measures with planned improvements, using standards like FORTIFIED, which has shown to significantly reduce insurance claims and losses during extreme weather events.
Why It's Important?
As climate change increases the frequency and severity of extreme weather events, the ability to accurately value resilience in housing becomes crucial. This shift could lead to more informed investment and insurance decisions, potentially lowering costs for developers and homeowners. By recognizing the financial benefits of resilience, the industry can incentivize the construction of more durable and sustainable housing, ultimately contributing to greater community safety and economic stability.
