From Urban Institute --

America’s housing and insurance markets faces a “perfect storm” of affordability challenges, climate risks, and supply shortages that threatens to displace millions of families, undermine economic stability, and push homeownership out of reach.

Why This Matters

This brief provides a case study of one housing market that many markets across the country can examine. The pressures on households, real estate and insurance markets, and state and local governments are playing out in cities, rural areas, and suburbs across America. Harris County, Texas, is a warning sign of what is to come and what risks we need to grapple with.

This crisis affects first-time homebuyers, working families, and seniors on fixed incomes, while creating ripple effects throughout the economy. Policymakers at all levels need actionable data to address supply constraints, implement affordability programs, and prepare communities for climate-related housing displacement. Critical policy areas at the intersection of insurance and housing finance markets require immediate attention, as solutions will demand regulatory and data coordination, innovative policies and risk management practices, and funding solutions that support households’ ability to access affordable insurance.

What We Found

The housing affordability crisis has reached historic proportions, with climate risks accelerating costs beyond what most Americans can afford.

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