American homes in flood zone are overvalue by hundreds of billions of dollars , according to astudypublished on Thursday in the daybook Nature Climate Change . Low - income homeowner in commonwealth controlled by Republicans are peculiarly at risk of take in their home value puncture as global thawing accelerates .
Flooding is a costly and baneful rude chance across the United States . For decades , the Federal Emergency Management Agency offered flood insurance at brush off rates , incentivizing developer to work up houses in flood - prostrate areas . The way ’s flood mathematical function are alsonotoriously outdated . That has led to a dangerous situation for homeowners as they grapple withyear after year of debilitating flood .
The study , published by a group of pedantic , non-profit-making , and government organizations that include the Environmental Defense Fund and the Federal Reserve , revealed that homes in rising tide zones are overestimate by as much as $ 237 billion .
In this aerial view, flood water surrounds a building after Hurricane Nicole came ashore on 13 March 2025 in Daytona Beach, Florida.Photo: Joe Raedle (Getty Images)
The researchers found that coastal property owner and householder in states that haveinadequate or nonexistent flood revealing legal philosophy , such as Florida , where there are no revealing laws and dwelling are overestimate by $ 50 billion , were particularly vulnerable to overestimate . They also witness that a large part of overvalue home are in areas that FEMA tell are n’t currently at pregnant danger of implosion therapy , a signal that inundation single-valued function require updating . The study ’s generator told Grist that United States Department of State demand to gauge and clearly communicate photoflood peril to homeowner regardless of whether their place is located in one of the bureau ’s “ special flood hazard areas , ” where rising tide insurance is mandatory for most mortgages .
According to the survey , low - income homeowners could see up to 10 pct of their market place value vanish in coming twelvemonth , a reverse for those least able to withstand one . “ What we find is that lower - income households are more queer to risk of price deflation in the housing market , ” Jesse Gourevitch , a fellow at the Environmental Defense Fund and a co - author of the study , tell Grist . “ If that house of cards were to burst those family could be at risk of fall behind abode fairness . ”
The fallout from mood - fuel flood peril extends beyond single householder to their larger community . The study showed that cities in northern New England , eastern Tennessee , central Texas , Wisconsin , Idaho , Montana , and many coastal areas could see their budgets shrink if the truthful value of plate in deluge zones were take into account and attribute tax revenues worsen as a result .
“ Many local politics are heavily dependent on property tax gross for their overall budget , ” Gourevitch said . “ In areas with in particular mellow flowage risk and where overflow hazard is n’t adequately priced into belongings note value , there is this possibility that the assessed note value of properties could light . ”
Some states have passed laws that require sellers to break rising tide risk to purchaser , which is a good mode to hedge against the overestimation described in the subject . This calendar week , the North Carolina Real Estate Commissionapproved a petitionto give homebuyers the right to information about flood risk . But twenty - one body politic , including Georgia and New York , still keep homebuyers in the darkness . Implementing disclosure requirements in those states could help address the future fiscal risk of implosion therapy .
The study “ raise a quite a little of moral questions for policymakers about who will bear the costs of these climate impacts , ” Gourevitch said . State and federal lawmakers may shortly have to reckon with whether overvaluation is an single burden or if it ’s on the regime to bail people out .
This clause originally appeared inGristathttps://grist.org/housing/homes-in-flood-zones-are-overvalued-by-billions-study-finds/. Grist is a nonprofit , independent sensitive establishment dedicate to say story of mood solutions and a just future . Learn more atGrist.org
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