This story originally appeared in Grist as part of the Climate Desk collaboration.
For generations, buying a home has represented the American Dream and a path to long-term financial security. But increasingly severe climate risks, from floods and fires to hurricanes, are making homeownership more expensive and uncertain. Sierra Eisley, 26, narrowly avoided buying a house in Asheville, North Carolina, before Hurricane Helen devastated the area—a near miss that illustrates how climate change is challenging the traditional promise of owning a home.
A home purchase interrupted
When Eisley thinks about the American Dream, they picture a house surrounded by a white picket fence. “A suburban house is exactly what I was taught as a child,” Eisley said. “You know, it’s what you see on TV.” Although their aspirations differed somewhat from the classic picket-fence ideal, Eisley saw buying a first home two years ago as an opportunity to pursue what they called “the big dreams we all have as kids.”
Eisley and their girlfriend, Jamie, were moving from Philadelphia to Asheville when they found a three-bedroom brick house with abundant natural light and a large tree in front. With financial help from their parents, they paid a deposit, and the seller accepted their offer.
Just before they were due to sign the closing documents, however, they discovered that the property carried a substantial lien. After consulting a lawyer, they decided to withdraw from the purchase and rent an apartment in Asheville instead.
That decision turned out to be a blessing in disguise. A month later, while Eisley and Jamie were still unpacking boxes and assembling furniture, debris from Hurricane Helen turned Asheville into a disaster zone. Their apartment basement flooded, but they were more fortunate than neighbors whose homes were destroyed.
Climate risks threaten the economics of homeownership
Homeownership has long been viewed as a cornerstone of the American Dream. A home can serve as a way to build wealth that may later help pay for children’s education or support retirement. But the arrangement has always been less stable than it appeared, and climate-driven damage and rising insurance costs are adding new risks.
As fires and floods damage properties and insurance premiums increase, putting savings into a home has become more financially precarious. In its report “Property Prices in Peril,” First Street predicted last year that climate risks could reduce U.S. home values by nearly $1.5 trillion by 2055.
As I wrote, “The American dream of homeownership could become a nightmare.”
Source: www.wired.com