US Homeowners and Lenders Face Rising Risks from Extreme Weather

The briefing highlights the growing financial threats to the US housing market from climate-related hazards, noting that over 79 million properties face wildfire risk and 14.6 million are susceptible to substantial flood damage. It emphasizes that low-income families and communities of color are disproportionately affected, citing that during Hurricane Katrina, homes owned by Black residents were three times as likely to experience flood impacts. The document advocates for the use of property-level climate data and the utilization of funding from the Inflation Reduction Act—which provides billions for climate justice, affordable housing resilience, and NOAA community efforts—to future-proof homes. It calls on regulators like the CFPB and FHFA to lead the industry toward climate-aligned housing standards and equitable financing solutions.

• The Inflation Reduction Act of 2022 provides significant funding for climate adaptation, including over $3 billion in block grants for environmental and climate justice, $1 billion for energy and water efficiency and climate resilience in affordable housing, and approximately $2.6 billion for NOAA to support community resilience.
• Climate-related hazards pose a systemic risk to the US housing market; the First Street Foundation identifies over 79 million properties at risk of wildfire and more than 14.6 million susceptible to substantial flood damage. In southern Florida, McKinsey & Company suggests property loss rates from sea level rise flooding could reach Great Recession levels by 2030, with affected properties potentially losing 5 to 15 percent of their value over the next decade.
• Extreme weather disproportionately impacts underserved communities and exacerbates structural racism. Between 2010 and 2019, National Flood Insurance Program claims of $31 billion were disproportionately concentrated in zip codes with more than 25 percent Black residents, and Black-owned homes were three times more likely to experience flood impacts during Hurricane Katrina.

APA

RMI (2022). US Homeowners and Lenders Face Rising Risks from Extreme Weather. https://rmi.org/resources/financial-risks-of-extreme-weather-to-us-homeowners-and-lenders/

Chicago

RMI. US Homeowners and Lenders Face Rising Risks from Extreme Weather. 2022. https://rmi.org/resources/financial-risks-of-extreme-weather-to-us-homeowners-and-lenders/.

Wikipedia

{{cite report |author=RMI |title=US Homeowners and Lenders Face Rising Risks from Extreme Weather |date=16 August 2022 |url=https://rmi.org/resources/financial-risks-of-extreme-weather-to-us-homeowners-and-lenders/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022homeowners, author = {{RMI}}, title = {{US Homeowners and Lenders Face Rising Risks from Extreme Weather}}, institution = {RMI}, year = {2022}, month = aug, url = {https://rmi.org/resources/financial-risks-of-extreme-weather-to-us-homeowners-and-lenders/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }