Overview: 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. Climate disasters increase missed mortgage payments; insurance is becoming more expensive or unavailable in some locations and mortgage rates and insurance premiums often do not reflect true climate risks, leading to risky development. Using econometric methods, researchers in this Focus Area quantify climate-related financial risks and assess effective mortgage and insurance-related strategies for adaptation. MACH’s Housing, Insurance, and Mortgage Markets Focus Area 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.

Focus area lead:

• Carolyn Kousky, Environmental Defense Fund