According to a recent report published in Nature Climate Change titled Unpriced climate risk and the potential consequences of overvaluation in US housing markets, the US real estate market is not fully accounting for the growing risks posed by climate change. Federal flood maps do not reflect the scope of risk in a warming world, and buyers are not accepting the dangers of climate change. Researchers estimate that across the United States, properties in vulnerable areas are overvalued by $121 billion to $237 billion. The study warns that individual homeowners will not be the only ones facing the financial fallout, municipal governments that rely heavily on property taxes could face huge budget shortfalls as flood-prone homes lose value or become uninhabitable. The report shows that a significant portion of overvalued properties are concentrated in communities along the Atlantic and Gulf coasts that have heightened exposure to hurricanes and rising seas, lax flood-disclosure laws, and a high proportion of residents who do not view climate change as an imminent threat.

To read more about this study visit Nature Climate Change.