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

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

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.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

4 minutes ago - Newsweek

Close-up on woman in white and blue striped knee-length dress standing next to mint green cruiser bike resting against low wrought iron fence in front of green lawn.

Paris Voters Approve More Car-Free Streets

Paris Mayor Anne Hidalgo says the city will develop a plan to close 500 streets to car traffic and add new bike and pedestrian infrastructure after a referendum on the proposal passed with 66 percent of the vote.

1 hour ago - domus

Close-up of man in manually operated wheelchair waiting at urban crosswalk.

Making Mobility More Inclusive

A new study highlights the challenges people with disabilities continue to face in navigating urban spaces.

2 hours ago - Greater Good Magazine