"Concerns Rise as Housing Market Bubble Threatens to Devalue 25% of Homes"

A new report by nonprofit First Street Foundation reveals that approximately one in four residential properties in the U.S. are overvalued in relation to their climate risk. As climate change leads to more frequent and severe extreme weather events, homes in states like California and Florida are particularly vulnerable to damages from hurricanes, floods, fires, and earthquakes. The research estimates that the number of homes destroyed by flames each year could double over the next three decades, reaching nearly 34,000 homes across the country. The overvaluation of homes due to climate risk has created a housing market bubble, with property values expected to decrease as the risk becomes more apparent. Major insurers are already leaving high-risk areas like Florida, and experts warn that states exposed to extreme weather events may become "uninsurable" in the future.