Climate Change is Threatening to Create a New Housing Crisis in America

Katie Oran and Yuliya Panfil wrote for Business Insider about the looming housing crisis in the United States as climate change continues to wreak havoc on coastal communities.

Between 1980 and 2019, the cost of storm damage in the United States has totaled $1.75 trillion. That is $300 billion more than the estimated total value of all property that sits within 700 feet of the US coastline.

To put it simply: the US Government and private insurance companies have spent more money rebuilding damaged coastal property than it would have cost to relocate every single home within this risky zone.

Yet, banks and private lenders continue to issue between $60 billion and $100 billion in new mortgages in these high risk coastal zones each year, allowing thousands of new families to move into harm's way. Lenders are able to get away with issuing these mortgages because they know that they can re-package and sell them to government-secured enterprises, like Fannie Mae and Freddie Mac. After billion-dollar hurricanes between 2004 and 2012, Fannie Mae and Freddie Mac saw a 10% increase in the unloading of risky mortgages from private lenders.

These mortgages aren't just enabling families to move into harm's way; they're putting billions of taxpayer dollars at risk. It's time to stop subsidizing these risky homes, and proactively craft a response to climate change that protects not only coastal residents but our entire economy.

Read about what policies can prevent Americans from being swept up in another housing crisis, this time caused by climate change, here.