Close to Home

The report finds that continuing current housing development patterns in Canada could lead to hundreds of thousands of new homes being built in high-hazard flood and wildfire zones by 2030. This trajectory could increase annual flood losses by up to $2 billion and wildfire losses by $1.1 billion. The analysis highlights significant gaps in provincial and territorial land use policies, which often delegate risk management to under-resourced municipalities. It also identifies moral hazards in disaster assistance programs and a critical lack of up-to-date hazard mapping and real estate disclosure. The report recommends that governments implement nationally consistent risk standards, reform disaster aid to deter risky development, and mandate hazard disclosure in real estate transactions to ensure housing affordability is not undermined by climate-driven destruction.

• The financial impact of status quo development is substantial, with potential annual flood losses increasing by $340 million to $2 billion and wildfire damages adding $1.1 billion annually.
• A small fraction of new homes drive the majority of risk; redirecting just 3% of homes targeted for 2030 construction (approximately 150,000 units) away from high-flood hazard areas could reduce new flood risk by nearly 80%.
• Most provincial and territorial governments do not directly regulate development in riverine flood hazard zones, often delegating this responsibility to municipalities that lack the capacity or political leverage to prioritize long-term safety over immediate housing needs.
• Current disaster assistance programs create a moral hazard by providing financial aid for rebuilding in high-risk areas, which reduces the incentive for homeowners and municipalities to avoid hazardous locations.
• Hazard information is critically insufficient, with many flood maps being outdated (created between 1975 and 1999) and a total lack of standardized national wildfire hazard mapping.
• The lack of mandatory hazard disclosure in real estate transactions means buyers and renters often unknowingly enter high-risk properties, as risks are not priced into property values.
• Indigenous communities, particularly on First Nations reserves, face acute housing shortages and unique barriers to building resilient homes due to limited access to safe land and colonial policies.

APA

Canadian Climate Institute (2025). Close to Home. https://climateinstitute.ca/wp-content/uploads/2025/01/Close-to-Home-Canadian-Climate-Institute.pdf

Chicago

Canadian Climate Institute. Close to Home. 2025. https://climateinstitute.ca/wp-content/uploads/2025/01/Close-to-Home-Canadian-Climate-Institute.pdf.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Close to Home |date=February 2025 |url=https://climateinstitute.ca/wp-content/uploads/2025/01/Close-to-Home-Canadian-Climate-Institute.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2025close, author = {{Canadian Climate Institute}}, title = {{Close to Home}}, institution = {Canadian Climate Institute}, year = {2025}, month = feb, url = {https://climateinstitute.ca/wp-content/uploads/2025/01/Close-to-Home-Canadian-Climate-Institute.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }