Drought and Real Estate
Some of America's most desirable places to live in 2021 are experiencing exceptional drought.
States in the West have already declared states of emergency. Municipalities are already instating water restrictions for the season.
AZ, CO, TX, ID and UT are target markets right now. Affordable housing availability is at an all-time low.
The two main water sources in the west (Powell and Mead) are projected to reach all-time lows this year. The Gov't expects to declare a water shortage in the West for the first time ever.
Shelter is only one necessity to sustain life.
Water and food come before that.
The U.S. Drought Monitor is jointly produced by the National Drought Mitigation Center at the University of Nebraska-Lincoln, the United States Department of Agriculture, and the National Oceanic and Atmospheric Administration. Map courtesy of NDMC.
Here are a few ways we are mitigating risk:
Creative business plans - Instead of remodeling the units’ flooring or updating the exterior wood panels, we are adding washers and dryers in the units. Last year, the fires in California and Oregon destroyed millions of acres of timberland, leveling 15 billion board-feet of timber—enough to build 1 million homes.
Water conservation - Adding sensors on water meters to identify a leak immediately instead of when the bill arrives.
Reviewing Oklahoma’s green initiative rebate program frequently - We want to ensure that we are staying up to date with environmental sustainability and applying to the programs that make our assets more “green.”
Communication plan in place with property management - The team has a list of vendors they can call due for emergencies and we have access to the residents to inform them quickly.
We will never mitigate our risk to zero but we can do our best to understand that having a plan in place and being proactive is essential for success. What would you like to see more investors doing to help mitigate climate risks?
Until next time….
Explore more. Adventure awaits.
