DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1536040
MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 70 June 2025 J O U R N A L "Climate risk is driving up homeowner- ship costs due to rising insurance premi- ums and potential repair or rebuilding expenses after disasters. These added financial pressures can make it harder for families to build and maintain wealth through homeownership." Flood Risk is "Fairly Balanced" Across U.S. Racial Groups Between an estimated 12% and 14% of white, Black, Hispanic, and Asian American households own homes that are at high risk of f looding. Local statistics, however, may present a different picture. Some 95% of Asian American homeowners, 92% of Black homeowners, and 86% of His- panic homeowners in the New Orleans metro area are at significant danger of f looding. In New Orleans, only 76% of white homeowners are in the same danger. The contrary is frequently true in Florida, where a higher percentage of white homeowners live in major f lood- prone areas like Miami, Tampa, and Jacksonville. Due to the unfortunate racial income gap, white homebuyers are more likely than Black or Hispanic buyers to be able to afford these usually more expensive residences. Extreme heat and poor air quality are two further ways that climate risk impacts dwellings' livability in addition to physical risks. Minority groups are also disproportionately affected by these conditions: Compared to 52% of homes owned by white people, roughly 81% of homes owned by Black people and some 77% of homes owned by Hispanic people are at significant risk from heat. Poor air quality is a dispro- portionate problem for Asian American households. Major air-quality concern is present in 32% of Asian American households' dwellings, which is almost three times higher than the proportion for white households (11%). Zillow's research clarifies how long-standing housing disparities are being exacerbated by climate risk. Homeowners in high-risk areas face increasing expenditures due to higher insurance premiums, a higher likeli- hood of repairs, and higher energy bills as natural catastrophes become more frequent and intense. Opportunities to accumulate wealth may be restricted by the unequal distribution of these costs. While looking through Zillow list- ings, homebuyers can examine climate risk information. With risk scores and interactive maps, the search map and for-sale ads provide information on five major risks: f lood, wildfire, wind, heat, and air quality. This data makes it easi- er for homebuyers and sellers to assess long-term aspects of homeownership, like costs, safety, and resiliency. Consumers Face Financial Stress as Climate Risk Adds to Challenges By increasing expenses, decreasing housing supply, and making it more dif- ficult to obtain insurance, the growing impact of climate threats is exacerbat- ing the housing affordability issue. This puts additional pressure on the housing market by straining budgets for both Climate Risk Type WhiteHome- owners: Share of Homes at Major Risk Black Home- owners: Share of Homes at Major Risk Hispanic Home- owners: Share of Homes at Major Risk Asian American Homeowners: Share of Homes at Major Risk Extreme heat 52 % 81 % 77 % 65 % Extreme wind 32 % 60 % 43 % 33 % Wildfire 18 % 13 % 25 % 16 % Flood 13 % 13 % 14 % 12 % Air quality 11 % 9 % 21 % 32 %