MONEY & LIFE

How Extreme Weather Is Making Everything More Expensive

By: Anneken Tappe · September 27, 2024 · Reading Time: < 1 minute

Weather Forecast

Extreme weather events are putting financial pressure on some U.S. cities and its residents.

The economic cost of weather phenomena across the globe is well-documented. El Niño-related droughts in West Africa led to soaring cocoa prices, for example. But these events are dealing damage stateside, too. Intense storms,  forest fires, or floods can impair critical infrastructure like roads, bridges, or power grids, or damage private homes, which then must either be repaired or rebuilt entirely. 

Rising Costs

When private citizens incur weather damage, insurance payouts (depending on the damage), savings, or  loans may be used to pay for the repairs that are needed.

But cities or municipalities often issue bonds or raise fees to pay for costs, per a Wall Street Journal report.

For example, Naples, Florida raised the price of parking to repay bonds that helped rebuild a pier damaged by Hurricane Ian in 2022. Meanwhile, residents in cities across Texas, Louisiana, and Oklahoma are facing higher gas and electricity bills to help offset $10 billion in debt issued in recent years to finance storm-related energy costs. Cities that are at high risk of extreme weather already have nearly $600 billion in outstanding debt, per data from ICE Data Services cited by the WSJ. And their citizens are feeling it with costs creeping higher.

Check it out


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

Communication of SoFi Wealth LLC an SEC Registered Investment Advisor

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

SOSS2024092702

TLS 1.2 Encrypted
Equal Housing Lender