Climate change pushes Black Altadena families toward foreclosure and displacement

Six months after a wildfire tore through Altadena in Southern California, dozens of Black families are now at risk of losing their homes as insurance gaps, expired moratoriums, and corporate buyers fuel a wave of post-disaster foreclosures.

Adam Mahoney reports for Capital B News.

In short:

• More than half of the Eaton Fire-damaged homes in pre-foreclosure belong to Black families, despite Black residents making up less than 20% of Altadena’s population.
• Corporate investors have purchased half of the nearly 150 fire-damaged properties sold since January, rapidly concentrating ownership and displacing longtime residents.
• Climate change is driving a surge in mortgage losses and foreclosures, with projections showing up to 30% of all foreclosures by 2035 will be linked to extreme weather events.

Key quote:

“Mortgage markets are now on the front lines of climate risk. Our modeling demonstrates that physical hazards are already eroding foundational assumptions of loan underwriting, property valuation, and credit servicing.”

— Jeremy Porter, head of climate implications at First Street

Why this matters:

Climate-driven disasters are reshaping the housing market, disproportionately affecting Black communities that already face long-standing disparities in wealth and homeownership. When wildfires, floods, or hurricanes hit, families with fewer financial safety nets often face impossible choices: pay for costly repairs and temporary housing, or sell at a loss. In places like Altadena, where property insurance is scarce and rebuilding takes years, these pressures lead to foreclosures and fire sales, clearing the way for corporate investors to take over. The result is a new form of displacement — one driven not by gentrification alone but by a changing climate that’s making homeownership less secure for those already marginalized. As these patterns repeat across disaster-prone regions, the racial wealth gap continues to widen.

For more: Wildfires threaten Altadena’s diverse communities and Black homeownership