Study: Climate Change to Cut $1.5 Trillion in US Home Values by 2055

Climate research firm First Street has some bad news for US homeowners about their property values. They may plummet collectively as much as $1.47 trillion over the next thirty years. 

First Street made the forecast in a new report published this month. Add up the value of all the property in the US, First Street says, and you get a whopping $50 trillion. A large chunk of that value rests in homes, businesses, and land in places with warm weather. For instance, think sunny California. Or along the beach in Texas, Louisiana, or Florida. All are places at-risk to symptoms of climate change. These include wildfires, hurricanes, and heat waves. 

A warming climate is wreaking havoc on US regions. Many people are moving away from high-risk places. More homes are empty and uncared for. That lowers property values. Plus, there's access to fewer resources to rebuild. First Street points to recent events like wildfires in California and Hurricanes Helene and Milton in 2024. Both events forced many to move. Those that stay face surging insurance costs. That's because of the greater chance that future disasters will strike again. 

First Street’s report estimates that 55 million Americans will voluntarily relocate to avoid climate change-driven disasters. One who has already done so is Mark Garcia. He used to live in Fort Myers Beach, Florida. His home was flooded by Hurricane Ian in 2022 and by Milton in 2024. He decided enough was enough and sold his property last month.  

“We’ve kind of given up on the whole beach-living dream,” Garcia told The Wall Street Journal. “Even though we didn’t have a house there anymore, seeing it go underwater again — it helped make up our decision.”    

Reflect: How might rising costs and safety concerns influence where people choose to live?

Photo of neighborhood from Unsplash courtesy of Maximillian Conacher.