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A new study warns that climate change could take a huge bite out of the value of what is the biggest investment many Americans hold.
Residential real estate is valued at $50 trillion in the United States.
Growth has been strong in the country’s Sun Belt states as people move there for a better quality of life, more space and better weather.
But those areas have seen an increase in severe weather and rising insurance costs, a First Street study found.
The three largest Sun Belt states (Texas, Florida, and California) have absorbed over 40% of the nation’s $2.8 trillion in natural disaster costs since 1980.
Insurance costs are rising dramatically faster than mortgage payments, according to the study.
Insurance as a percentage of monthly housing payments has risen from 7-8% in 2013 to more than 20% in 2022.
The study claims that By 2055, 70,026 neighborhoods may experience negative property value impacts from climate risk.
The figure could reach $1.47 trillion in net property value losses due to insurance pressures and shifting populations from areas with the highest climate risks.
55 million Americans could move by 2055 with more than 5 million people moving this year.
