real estate
Newsletter
Credit: Greg Jones/Big Stock Photo
Climate risks may trigger the next housing crisis
Climate change is making U.S. homes riskier investments, as rising insurance costs signal a looming housing bubble that could devastate the economy.
In short:
- Home insurance premiums are climbing nationwide due to increasing climate risks like wildfires and floods.
- Experts warn that home prices don’t reflect these growing risks, leading to a potential housing bubble.
- If this bubble bursts, it could cause widespread economic damage, especially in vulnerable regions.
Key quote:
“We’re in a bubble, and whether it deflates slowly, causing some economic pain, or pops suddenly, shocking the country’s economic system, will come down to policy choices that governments make now.”
— Jesse Gourevitch, an environmental economist at the Environmental Defense Fund
Why this matters:
With climate-related disasters becoming more frequent, homeowners face increasing financial risks. Addressing these challenges now could prevent a catastrophic economic collapse in the future.
More: People are moving to risky areas despite climate dangers
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Newsletter
Credit: Gerd Altmann/Pixabay
People are moving to risky areas despite climate dangers
Despite growing climate threats, over 300,000 Americans relocated to flood or fire-prone areas last year, driven by affordability and housing availability in states like Florida and Texas.
In short:
- A Redfin report shows that U.S. counties most vulnerable to floods and fires saw a population increase from July 2022 to July 2023, though some fire-prone areas in California saw a net outflow.
- Rising insurance costs due to increased climate-related disasters are making some areas unaffordable, prompting moves away from places like California's Ventura County.
- Despite risks, affordability and low taxes in Texas and Florida continue to attract residents to these vulnerable areas.
Key quote:
"In this new world, this new regime that we live in, maybe people are changing their behavior a bit."
— Elijah de la Campa, Redfin senior economist
Why this matters:
As climate change exacerbates extreme weather, more Americans face increased risks and financial burdens by moving to vulnerable areas. Understanding these migration patterns helps address the need for improved infrastructure and resilience planning in at-risk communities.
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Snakes, spores and sewage: Life in the N.Y.C. neighborhood ‘the Hole’
The small neighborhood on the border of Brooklyn and Queens has a colorful history but an uncertain future because of climate change.
Newsletter
Photo by aurora.kreativ on Unsplash
When sea levels rise, so does your rent
As property investors turn their gaze inland, away from Miami's exclusive low-lying beach area, residents in one poorer neighbourhood further above sea level say rising rents are forcing them out.
Newsletter
Big Stock Photo
‘People are happier in a walkable neighborhood’: the US community that banned cars
A new housing development outside Phoenix is looking towards European cities for inspiration and shutting out the cars. So far residents love it.
Newsletter
Photo by Wes Warren on Unsplash
Flood threats are rising. Here’s where people are moving into harm’s way
Worldwide, humans now occupy more than twice as much land in flood-prone areas as they did four decades ago, according to a new study in the journal Nature.
Photo by Jo-Anne McArthur on Unsplash
Government shutdown may hurt home sales in flood-prone areas
Congress funds a flood insurance program that many home buyers in risky areas rely on. The money is about to run out, a real estate trade group warned.
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