Due to climate change, homeowners should consider upgrading their homes to withstand extreme weather events such as hurricanes. Upgrading roofs, windows, and doors can protect against wind damage and water infiltration. While expensive, these upgrades can save money in the long run by reducing damage and potential losses. Experts predict an active 2024 hurricane season, making it crucial for homeowners to prepare their homes now.
Due to extreme weather and climate disasters from 2018 to 2022, the U.S. incurred over $617 billion in economic losses. These events have a significant financial impact, affecting Americans' housing, insurance premiums, health-care expenses, retirement savings, and career prospects. As temperatures rise, economic costs are projected to increase, making it important to mitigate climate change for both environmental and financial well-being.
Miami, despite being highly vulnerable to climate change, is experiencing a surge in population and development. City officials are working on adaptation measures, such as stricter building codes and infrastructure enhancements, but there are concerns about the financial risks for residents. Climate risks include sea-level rise, flooding, property damage, and insurance premium increases. However, many residents remain optimistic and are willing to overlook these risks, citing the city's desirable weather and economic opportunities.
The Inflation Reduction Act has allocated $8.8 billion to make homes more energy-efficient. Eligible homeowners can receive up to $14,000 to cover upgrades like electric heat pumps, insulation, or appliances. Low- and moderate-income households will qualify for more funding. The program aims to save households over $1 billion annually in energy costs. While the first state application has been approved, it's expected that many consumers will be able to access rebates within months.
Governments buy homes in floodplains to help homeowners move to safer areas and reduce future flood damage. FEMA's Hazard Mitigation Grant Program has purchased thousands of homes since 1989, with 75% of funding coming from the federal government. While buyouts can lead to open space and protect other homes, they can also pose challenges for governments in managing the land. Despite the ongoing housing shortage, these programs continue to provide assistance to homeowners affected by flooding.
Mortgage rates have slightly increased to 7.34%, but their future direction depends on the labor market. Rising homeownership costs also include increasing insurance and taxes, especially in areas prone to natural disasters. While the housing inventory is improving, concerns have been raised about a change in commission arrangements for real estate agents, which may affect home sales.
