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Venice Flooding

Venice Undergoes Historic Flooding; Mayor Blames Climate Change

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The city of Venice is currently suffering from a flood of historic intensity. The highest tide the city has seen in 50 years has overwhelmed seawalls and destroyed docks, flooding roughly 85% of the famous lagoon city. Strong winds have worsened the impact of flooding. Already, two people have died in connection with the floods; an elderly man was electrocuted as he tried to run electric pumps to remove water from his home, and a second person was found dead elsewhere. Additionally, the floods have caused a tremendous amount of property destruction, as boats floated into the streets and countless homes and other buildings were partially submerged.

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According to a statement from Venice’s government, the city was struck by a tide of 187 centimeters, or 73.6 inches, on Tuesday night. This is the worst flood since 1966, when tides of 194 centimeters or 76.4 struck the city. The historic crypt of St. Mark’s Basilica, which has been standing for 1,200 years, flooded for the sixth time in its history. At a news conference, Venice’s mayor, Luigi Brugano, characterized the damage as “enormous,” and said that repairing the city would cost hundreds of millions of euros. He also claimed the flooding was a direct result of climate change, saying, “Now the government must listen… these are the effects of climate change… the costs will be high.” The city’s government will “submit a request for a state of emergency” to the country’s central government, in the hope of securing funds to repair the damage. Schools were closed due to the weather conditions.

Despite the immense level of destruction already, more high water is expected to come in the next several days

People have been seen wading through waist-high water in the streets of Venice, and in some areas the water is high enough to swim in. Tables and chairs from outdoor restaurants floated through the waters, and tourists had to leave through the windows of high-end hotels as six-foot-high water submerged the first floors of these hotels. A few boats used for public transportation in the city sank, and officials worry about the flood’s effect on the integrity of older historic buildings. On Twitter, Mayor Brugano said “Venice is on its knees,” and posted pictures of himself and a religious leader surveying the damage of St. Mark’s Basilica, wading through knee-high water.

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Because he is blaming the flood on climate change, the mayor has argued that serious work needs to be done for the future of the city to prepare for future floods. At the news conference, the mayor shared that while wandering through the city, he “found people in tears because they had lost everything,” adding “if we don’t want the city to be abandoned, we have to give certain answers. It’s not just about quantifying the damages, but about the future of this city.” A similar flood transpired last year, leaving many people homeless and destroying personal belongings. The Catholic church has pledged to provide lodging for people left homeless by the flood, giving priority to people who are the most in need.

Despite the immense level of destruction already, more high water is expected to come in the next several days, much to the dismay of the city’s 262 thousand residents, according to the city’s website. Italy’s Prime Minister, Guiseppe Conte, is scheduled to visit the city and spend the night soon. The country has also invested billions of euros in flood-protection technologies, but this technology has yet to be implemented. This flood-protection system, which is scheduled to go online in 2022 and involves offshore underwater dams, may have prevented the disaster if it had been operative. However, flood barriers are just one of the measures necessary for the city to combat climate change, as elements like the navigability of the canals are also involved.

Global Warming

Climate Change’s Present and Future Impact on Real Estate

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Already, climate change is having a serious impact on global political and economic systems, and as temperatures continue to rise, this impact will only become more severe. Climate change touches nearly all aspects of human life, as governments around the world grapple with the logistics of dealing with the problem, and powerful industries such as oil and gas struggle to adapt to changing attitudes and environments. Perhaps a less-expected area affected by climate change is real estate; as the sea level rises and weather patterns shift, some properties, particularly ones close to coastlines and beaches, are experiencing a decrease in valuation as their long-term viability is called into question, whereas properties in once-undesirable locations are becoming more popular. The reality of climate change has already taken hold in the real estate industry, as investors, landlords, and homeowners attempt to prepare for the often-unpredictable effects of the phenomenon.

Investors are wise to recognize that the problem of climate change is not going away; in fact, recent studies have revealed that the impact of climate change is likely to be even more significant than previously feared, with polar ice caps melting at an alarming rate and sea level rises now expected to displace 150 million people worldwide. Moreover, the increase in the frequency and intensity of extreme weather events brought about by higher global temperatures poses a threat to the integrity of real estate fixtures, and buildings constructed in vulnerable areas, without appropriate fortification, are at risk of collapse. Low- and moderate-income communities are at particular risk, as residents in these places are less likely to be able to afford dealing with the impacts of climate change, which at best causes property destruction and at worst can kill. 

Certainly, one of the factors in the real estate industry’s slow reaction to climate change is denial; oftentimes, the position that trends in the industry will continue as they always have is far more palatable than grappling with an unpredictable, substantial destructive force.

The Federal Reserve Board of San Fransisco recently published a collection of reports detailing the intersection of climate change and real estate. The organization warns that climate change could cause home values to fall significantly, could disincentivize banks from lending to affected communities, and towns and cities may not have the necessary resources to build sea walls and other infrastructure to protect against climate change. However, the reports also detail economic opportunities that could arise from climate change. Despite the breadth of scientific data available about climate change, the real estate industry has been slow to react, meaning plenty of investors could be caught off-guard by climate-related devaluations in their properties, whereas shrewd investors can take advantage of their understanding of climate change by investing in properties that will become popular as people relocate away from the coasts and areas where extreme weather events will be most prevalent.

A number of factors complicate the real estate industry’s response to climate change. One such factor is the nature of how flood insurance is calculated; despite the presence of more up-to-date data, calculations for the probability of floods occurring in particular locations are based on outdated maps and figures and don’t take into account rising sea levels. Additionally, the federal government subsidizes flood insurance programs, incentivizing developers to invest in coastal properties even though they are at increasingly-greater risk of destruction. Certainly, one of the factors in the real estate industry’s slow reaction to climate change is denial; oftentimes, the position that trends in the industry will continue as they always have is far more palatable than grappling with an unpredictable, substantial destructive force. As such, experts in the field are advising business leaders and other high-impact decision makers to adapt to a “new abnormal,” which involves taking a radically different and unprecedented approach to making real-estate choices, even when they may seem counter-intuitive to those who fail to consider the extent of climate change and its impacts.

Featured image credit: https://www.flickr.com/photos/thecvf/23054259530