As wildfires continue to rage in Greater Los Angeles, the outlook for home insurance, housing values and other costs in places prone to severe climate events becomes grimmer.
Research published this week by the Carnegie Endowment for International Peace found that based on an analysis of home values as of 2020 — when the overall property market was valued at $34 trillion — residential properties could face a value correction of $1.2 trillion to $1.9 trillion if housing markets reprice to reflect threats posed by storms, subsidence, sea-level rise and wildfires.
Repricing could be especially significant in places like Florida, which saw big home-price appreciation during the Covid-19 pandemic and also has several areas prone to hurricanes and flood events.
