HOUSINGNEWS REPORT
FEATURED ARTICLE
Rising population and increasing development along scenic coastlinesare putting more people and more valuable property in harm’s way in South Florida, according to Michael D. Berman, owner of Michael Berman Consulting, a private consulting firm to commercial and multi- family interest and policy organizations. “We could see the doubling or quadrupling of flood insurance over a relatively short period of time,” said Berman, who has served not only as chairman of the Mortgage Bankers Association, one of the industry’s most influential lobbying organizations, but also as a senior adviser to Shaun Donovan, who was the secretary of Housing and Urban Development from 2009 to 2014. “With high tides and king tides, we could see more flooding and more serious flooding.” We could see the doubling or quadrupling of flood insurance over a relatively short period of time. With high tides and king tides, we could see more flooding and more serious flooding.”
“I think the single biggest issue is education,” said Berman, former president of CWCapital, a leading commercial real estate lender and management firm specializing in multifamily housing projects that was sold to Fortress Investment Group in 2010. “Whether it is policy folks or private folks, we need to educate them so they can focus on the issues.” Selling the Miami Lifestyle Others take a more moderate view and are unmoved by the more calamitous predictions. Miami Beach luxury brokers Jill Eber and Jill Hertzberg of Coldwell Banker Residential Real Estate, known locally as The Jills, acknowledged that climate change was happening, but the real estate duo remain bearish about the
South Florida real estate market and its future growth. Eber and Hertzberg said the City of Miami Beach, and its Mayor Philip Levine, are aggressively combating the seasonal flooding. “Our city is actively attacking the problem of flooding,” said Eber, who together with Hertzberg has sold more than $2.8 billion in real estate since 2005. “They're not hiding their head in the sand. The city understands it. People see that and they feel comfortable about buying in Miami Beach.” Hertzberg, who along with Eber represents high net worth buyers and sellers, said the strong U.S. dollar was hurting their business more so than the occasional flooding in Miami Beach. Hertzberg said political and financial
U.S. RESIDENTIAL MARKET EXPOSURE TO LOSS (2003-2014)
$1,000
$884.70
$818.10
$771.90
$800
$757.90
$696.40 $703.00
$656.70
$639.40 $620.40
$600
$430.50 $419.50
$372.30
$400
$200
$0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Michael D. Berman Owner of Michael Berman Consulting
Source: Insurance Information Institute
ATTOM Data Solutions • P5
Made with FlippingBook Online newsletter