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Climate Crisis: U.S. Foreclosures to Soar 380% by 2035

5/20/2025

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Summary

Story summary

A First Street study predicts a 380% rise in U.S. foreclosures over the next decade due to extreme weather.
By 2035, climate-related events could contribute to 30% of all foreclosures, disproportionately affecting low- to moderate-income households.
Lenders may incur annual losses of $1.2 billion by 2025, escalating to $5.4 billion in ten years from mortgage defaults.
Increased insurance costs are linked to higher foreclosure rates, especially in high-risk states like Florida and Louisiana.
Many homeowners lack sufficient flood insurance, heightening foreclosure risks during severe weather events.

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Story summary

A First Street study predicts a 380% rise in U.S. foreclosures over the next decade due to extreme weather.
By 2035, climate-related events could contribute to 30% of all foreclosures, disproportionately affecting low- to moderate-income households.
Lenders may incur annual losses of $1.2 billion by 2025, escalating to $5.4 billion in ten years from mortgage defaults.
Increased insurance costs are linked to higher foreclosure rates, especially in high-risk states like Florida and Louisiana.
Many homeowners lack sufficient flood insurance, heightening foreclosure risks during severe weather events.