Climate change is now affecting every part of the United States. From stronger hurricanes to more frequent floods and wildfires, disasters are becoming more frequent, severe, and costly. MACH’s Housing, Insurance, and Mortgage Markets research team is working to understand how these events are putting stress on financial systems – particularly those supporting housing – and how public policy can help protect households, communities, and businesses from these growing dangers.

• Climate disasters increase missed mortgage payments; insurance is becoming more expensive or unavailable in some locations.
• Mortgage rates and insurance premiums often do not reflect true climate risks, leading to risky development.
• Mortgages exposed to climate risk are bundled and sold as mortgage-backed securities, making the overall financial system more vulnerable.
• Using econometric methods, this research group quantifies climate-related financial risks and assesses effective mortgage and insurance-related strategies for adaptation.
• The group’s research helps shape policies that protect the housing market and guide informed decisions by consumers and institutions.