In a recent survey conducted by Fannie Mae, concerns over the increasing impact of extreme weather events on housing affordability have come to the forefront. The survey, part of Fannie's National Housing Survey (NHS), delved into the worries of homeowners and renters regarding weather-related disasters and their financial ramifications.
The findings unveiled a growing anxiety among respondents, with a significant portion expressing concerns about various weather events such as extreme heat, strong winds (from hurricanes and tornadoes), droughts, wildfires, and flooding.
According to the survey, the most prevalent concerns among consumers were extreme heat (24%) and strong winds from tornadoes and hurricanes (23%). Alarmingly, around a quarter of respondents reported experiencing weather-related damage to their current homes.
Kevin Tillmann, Fannie Mae's market research senior associate, and Saif Amin, senior director of climate impact strategy, emphasized the influence of geographic location on consumer concerns. "Strong winds are the biggest concern in the Northeast, Midwest, and South, while extreme heat is the biggest concern in the West," they stated in a blog post.
The survey also shed light on the financial toll of extreme weather events, with 66% of insured homeowners noting an impact on their home insurance premiums. Additionally, two-thirds of respondents stated they had taken preventive measures to mitigate damage risks.
Interestingly, homeowners rely on a mix of sources to assess weather-related risks, with insurance agents (40%) and the Federal Emergency Management Agency (FEMA, 35%) topping the list. Friends and family also play a significant role (32%) in information sharing on this topic.
The survey findings are particularly pertinent in light of data from the National Oceanic and Atmospheric Administration (NOAA), which reported a record-breaking number of billion-dollar-plus weather and climate disasters across the United States in 2023.
As the frequency of billion-dollar disasters rises, so do the challenges surrounding housing costs and effective risk mitigation. Fannie Mae highlighted the importance of raising awareness about affordability challenges facing homeowners and renters, emphasizing the need for proactive measures to minimize damage and protect homes.
"These disasters impact housing costs, and significant work remains to be done to raise awareness on the topic, particularly about the affordability challenges facing homeowners and renters," Fannie Mae stated. "We believe highlighting these issues, like the affordability of insurance and the assorted precautionary measures consumers can take to minimize damage and protect their homes, is key to ensuring housing stability."
With the threat of extreme weather events looming large, addressing these challenges is crucial for ensuring the resilience and affordability of housing for all.