As climate change accelerates, the U.S. housing market faces growing risk, especially in regions prone to wildfires, floods, and rising sea levels. Research shows billions of dollars in residential property are vulnerable, with markets in areas like coastal Florida, the Southwest, and wildfire-stricken California most at risk. Despite mounting physical threats, many properties in danger zones continue to see inflated values, with financial institutions and homeowners often overlooking long-term environmental costs. Researchers warn that as disasters become more frequent and insurance costs spike, prices could plummet sharply in the most affected areas.
In places like Santa Fe and Phoenix, homebuyers and developers are contending with increased fire risk, water shortages, and extreme heat. Experts suggest that as awareness grows and risks become harder to ignore, the real estate market could face a painful correction. The disconnect between current property values and future environmental realities may leave investors and homeowners exposed to steep losses if proactive decisions aren’t made soon.
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