Driving Real Estate Resilience: Insights from NAR’s Sustainability Summit 2019
In a powerful demonstration of its commitment to environmental stewardship and the future of the housing market, the National Association of Realtors (NAR) convened its exclusive, invitation-only Sustainability Summit 2019 in the historically significant city of New Orleans. This pivotal two-day working session brought together a diverse group of experts, thought leaders, and real estate practitioners from across North America. The summit served as a crucial platform for addressing the burgeoning challenges of climate change and crafting proactive leadership strategies to benefit Realtor associations, communities, and homeowners nationwide.
The vision for the summit’s advisory committee was crystal clear: to cultivate a culture within the real estate profession where Realtors thrive by promoting viability, resilience, adaptability, and resource efficiency. The overarching goal was to equip NAR with actionable recommendations for confronting climate change, mitigating potential liability associated with emerging risks, enhancing professional representation, and effectively leveraging the indispensable Realtor-homeowner relationship to navigate upcoming environmental and economic shifts.
NAR’s Enduring Commitment to Environmental Stewardship
The summit commenced with an insightful review of NAR’s foundational ethics and policy, led by Craig Foley, Chief Sustainability Officer at LAER Realty Partners and Chair of the NAR Sustainability Advisory Group. Foley underscored a fundamental commitment to protecting the environment, tracing it back to the organization’s pivotal 1970 charter update. He referenced a quote that resonated with the profound environmental consciousness akin to Rachel Carson’s seminal work, Silent Spring, unequivocally outlining NAR’s organizational mandate to act as diligent stewards of the land. This historical context served to reinforce that sustainability is not a new frontier for NAR but an inherent part of its ethical bedrock, guiding its members in their professional duties and community engagement.
Understanding the Scientific Imperative: Insights from the Union of Concerned Scientists
A significant segment of the summit focused on the scientific realities of climate change, with Erika Spanger-Siegfried from the Union of Concerned Scientists (UCS) presenting two critical studies: When Sea Rise Hits Home and Killer Heat in the United States. Her presentation provided compelling scientific arguments detailing the profound impact of changing weather patterns and sea-level rise on real property. Spanger-Siegfried delved into the complex ramifications for property insurability, a key concern for homeowners and the real estate market alike. She also highlighted the potential for erosion of local tax bases due to the loss of migrating populations forced to relocate from vulnerable areas.
The Unprecedented Threat of Extreme Heat
Perhaps most alarming was her discussion on the emergence of “off the chart” heat and humidity levels. These extreme conditions are not merely incremental increases in temperature; they represent a fundamental shift, with some emerging heat patterns so severe that current measurement tools struggle to fully capture their intensity and potential impact on human health and well-being. This unprecedented heat poses significant challenges for urban planning, infrastructure, and public health, directly affecting liveability and property value in affected regions.
Mitigation and Adaptation: Lessons from the Urban Land Institute
The concerning insights presented by UCS regarding extreme heat found a parallel in the Urban Land Institute’s (ULI) recent publication, Scorched. While acknowledging the grim realities, ULI’s report offered a vital glimmer of hope and practical perspectives. It emphasized that “widespread adoption of temperature reduction strategies (mitigation) could potentially reduce or even offset the urban warming trends currently occurring in cities.” These crucial strategies are multifaceted and often involve integrated water retention and management systems designed to reduce the devastating impacts of both floods and droughts. Furthermore, they frequently incorporate the strategic growth of green infrastructure, including the planting of native species trees, the installation of green roofs, and the development of bioswales.
For cities like Toronto, which are increasingly investing in such solutions, this highlights the critical importance of robust investment in municipal and site-level resilience. Such investments are not just environmental initiatives; they are essential means of protecting property owners from escalating risks, safeguarding property values, and ensuring the long-term sustainability of urban environments. These measures contribute to cooler urban environments, better stormwater management, and enhanced biodiversity, all of which directly translate into improved quality of life and sustained property desirability.
The Realtor’s Pivotal Role in a Sustainable Future
A consistent and undeniable theme throughout the summit discussions was the pivotal role of the Realtor. Whether valuing a property boasting high-performance features and resilient construction, or showcasing homes in walkable neighborhoods with tree-lined streets, the connection was clear: Realtors are essential communicators of value. They are uniquely positioned to articulate the benefits of energy efficiency, highlight resilient property features, and educate clients about climate risk, thereby shaping buyer and seller expectations and influencing market dynamics.
“You can open up the newspaper every day and see an alarming trend,” remarked Vince Malta, then President-Elect of NAR. “It’s important we are at the table in meeting the challenges of the changing climate in the coming years.” In a subsequent interview, Malta emphatically underscored that the summit was designed to be more than just a discussion forum; it was a catalyst for creating a concrete action plan for NAR’s leadership team. As CEO and broker at Malta & Co. in San Francisco, Malta voiced a personal conviction shared by many: “As an individual I would want to know how this is going to affect my children and my community, and what is expected of me. Right now, those answers are not really there.” This sentiment powerfully articulates the urgency and the demand for clear, actionable guidance for both real estate professionals and the communities they serve.
Crafting a Framework for Risk Assessment and Action
Lindene E. Patton, an esteemed lawyer and partner at Earth and Water Law in Washington, D.C., and a globally recognized expert in risk, resilience, and related economic impacts, offered a groundbreaking suggestion. She proposed the development of a specialized real estate climate-risk index. This index, she argued, could be referenced against the existing Actuaries Climate Index, thereby forging a crucial link between meaningful, homeowner-relatable climate information and the complex actuarial sciences that govern insurability. Such an index would provide objective data, helping homeowners understand their property’s specific risks and aiding insurers in making more accurate assessments.
Patton’s recommendations extended beyond mere data collection; she directed participants to converge on developing strong, simple language. This accessible communication, she emphasized, would empower NAR leadership to act decisively and strategically toward a more positive and resilient future by 2030. This approach acknowledges that complex scientific and economic data must be translated into understandable terms to drive effective policy and individual action within the vast real estate sector.
The Path Forward: NAR’s 2030 Climate Change Action Plan
After two days filled with inspiring talks, deliberate discussions, and collaborative working sessions, the summit culminated in a unanimous recommendation to NAR leadership: to establish and implement a comprehensive 2030 climate change action plan. This ambitious undertaking recognizes the immense influence of NAR, an association boasting over one million members across the United States. The potential impact of such a plan, disseminated through its vast network, is transformative.
One delegate, Kerri Hartnett, Principal Broker at Hartnett Homes in Portland, Oregon, articulated an aspirational yet achievable vision: “Imagine the power that every Realtor in America can have by helping property owners in every market to bring sustainability and resilience to their communities.” This vision encapsulates the profound collective potential of Realtors to act as frontline agents of change, guiding homeowners towards more sustainable practices, promoting resilient property features, and ultimately fortifying communities against the growing impacts of climate change.
NAR stands poised as a powerful change-making organization, capable of significantly accelerating the agility of real estate markets to respond effectively to emerging climate risks. By embracing and championing sustainability, NAR can not only preserve the wealth of Americans in every community but also actively contribute to building a more resilient, environmentally conscious, and prosperous future for generations to come. The 2019 Sustainability Summit laid the groundwork for this essential journey, positioning Realtors as indispensable partners in navigating humanity’s most pressing environmental challenges.