Climate change poses a significant threat to nearly half of all U.S. homes, subjecting them to extreme weather conditions such as flooding and wildfires, which could have a significant impact on the housing market and insurance costs. According to estimates from Realtor.com, the total value of U.S. homes at risk from climate-related damage is around a staggering $22 trillion.
This climate crisis is not only a concern for homeowners due to the direct risks posed to their properties but also because of the financial implications. Many homes are already facing higher insurance premiums, making homeownership a more costly endeavor and potentially affecting sales. The issue of climate risks is not confined to coastal and mountainous regions, typically associated with natural disasters such as hurricanes and wildfires.
Inland states like Kentucky, South Dakota, and West Virginia are also feeling the impact, with residents facing higher insurance premiums due to increased weather-related damage. This shift is a sign of how ubiquitous the issue of climate change has become.
The effects of climate change are already apparent, with over 3 million Americans having to relocate due to increased flood risks. Additionally, around 83 million Americans are exposed to unhealthy air each year due to changes in the climate.
A study highlights the severity of the situation, indicating that $22 trillion worth of residential properties nationwide are at risk of severe damage from climate-related issues, threatening nearly half of all U.S. homes. An economist from Realtor.com warns that the wider housing sector could become destabilized due to these potential hazards, leading to lower home prices and increased insurance costs.
Further research by the First Street Foundation reveals that about 36 million homes, representing a quarter of all U.S. real estate, are dealing with higher insurance costs and limited coverage options. This situation is a direct consequence of escalating climate threats. The findings underscore the urgent need for all stakeholders, including homeowners, insurance providers, and policymakers, to take action against climate change and its devastating effects on the housing sector.
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