Climate Disasters Could Trigger Billions in US Mortgage Losses by 2035
A new report by risk-modelling firm First Street has revealed that climate-related disasters are rapidly emerging as a critical threat to the US housing market, with the potential to cause over $1.2 billion in mortgage-related credit losses in 2025 alone and up to $5.4 billion annually by 2035.
The findings come as the Midwest reels from the deadly tornadoes that struck Missouri and Kentucky, killing at least 25 people and further exposing the vulnerabilities of American communities to intensifying climate extremes. Rising global temperatures are fueling more frequent and destructive weather events, leading to mounting insurance losses, higher premiums, and significant property value depreciation.
According to First Street, nearly 19,000 properties could be foreclosed this year due t...