Home Valuation Needs to Consider the Risk of Climate Change

Climate change-fueled sea-level rise could cause a housing crisis of a new sort if the federal government doesn't reconsider valuation policies.

2 minute read

September 3, 2020, 9:00 AM PDT

By Lee Flannery @leecflannery


Flooding

nevieklejigh94 / Flickr

In their recent opinion piece, Katie Oran and Yuliya Panfil describe what they predict to be the effect of climate change on the future of housing in the United States. Oran and Panfil warn of a new kind of housing crisis, destroying home values and potential causing a major housing market crash, caused by neglecting to consider sea-level rise. 

According to a report from First Street Foundation, federal flood maps don't account for 67% of homes at risk of flooding. Readers can use the organization's Flood Factor tool to determine current and future flood risk by address. 

Oran and Panfil account for the damager caused by flooding in monetary terms: 

Between 1980 and 2019, the cost of storm damage in the United States has totaled $1.75 trillion. That is $300 billion more than the estimated total value of all property that sits within 700 feet of the US coastline. To put it simply: the US Government and private insurance companies have spent more money rebuilding damaged coastal property than it would have cost to relocate every single home within this risky zone. 

Risky mortgages are re-packaged and sold to such government-secured enterprises as Fannie Mae and Freddie Mac. Oran and Panfil call to stop insatiable subsidization and for a government response that acts to consider the climate change risk in valuation and incentivize relocation and buy-out packages in a process of managed retreat. 

"The key, however, is for the government to listen to the science and act now to prevent Americans from being swept up in another housing crisis, this time caused by climate change," opine Oran and Panfil.

Tuesday, September 29, 2020 in Business Insider

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

4 hours ago - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3, 2025 - Governing

White park shuttles with large Zion logo on side and red rock cliffs in background in Zion National Park.

Since Zion's Shuttles Went Electric “The Smog is Gone”

Visitors to Zion National Park can enjoy the canyon via the nation’s first fully electric park shuttle system.

July 15 - Reasons to Be Cheerful

Chart of federal transportation funding comparing Biden and Trump administration spending.

Trump Distributing DOT Safety Funds at 1/10 Rate of Biden

Funds for Safe Streets and other transportation safety and equity programs are being held up by administrative reviews and conflicts with the Trump administration’s priorities.

July 15 - Transportation for America

Close-up on yellow and black TAXI sign on top of beige car in central Munich, Germany.

German Cities Subsidize Taxis for Women Amid Wave of Violence

Free or low-cost taxi rides can help women navigate cities more safely, but critics say the programs don't address the root causes of violence against women.

July 15 - Bloomberg