A new study by CoreLogic found nearly one-third of the nation’s housing to be at risk of a natural disaster. By analyzing the severity and frequency of damage brought on by natural disasters, CoreLogic researchers created a composite risk score. Frank Nothaft, chief economist at CoreLogic, says businesses should better prepare themselves for potential risks. It will not just affect homeowners, either. The trickle down effect of a catastrophic event can shake the economy, Nothaft says, just as the pandemic has for nearly one year now. Last year even tied with 2016 for the warmest year on record, along with seeing a record number of hurricanes and wildfires.
This type of data is increasingly pertinent as America grapples with climate issues. CoreLogic released its findings on Wednesday, the same day that President Joe Biden is set to launch an ambitious new effort to combat climate change. Among other things, his plan is slated to address communities disproportionately affected by climate change as well as sustainable infrastructure.
In 2020, the United States saw a record number of hurricanes make landfall as well as the most active wildfire season in the nation’s history.
Twenty-two weather- or climate-related disasters each resulted in at least $1 billion in damages last year, according to the National Oceanic and Atmospheric Administration. The 22 events combined cost the nation $95 billion in damages. And the risk to American real estate is only rising.