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.
Zoë Schlanger reports for The Atlantic.
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
