Lack of Price Divergence Between High and Low Rent Areas Suggests Real Estate Market Doubts Climate Goals
The minimal price difference between high- and low-rent areas indicates doubts about the profitability of deep carbon reductions in real estate. For such investments to succeed, market confidence in achieving climate goals must improve. Without this, investors will prefer lighter, less risky approaches. Investing in high-rent areas also helps manage risks related to future carbon reduction costs.
