Which Homeowners Face a Greater Risk From Climate Hazards?

With natural disasters becoming more frequent across the US, some homeowners in particular locales are more at risk than others
May 14, 2025
4 min read
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Aerial view of mobile home community after hurricane
A recent study shows minority homeowners are much more likely to be affected by natural disasters.

Natural disasters are becoming more frequent, but recent research by housing market platform Zillow shows their impact isn’t being felt equally by U.S. homeowners. Zillow's report shows that Black and Hispanic homeowners in the U.S. are more likely to live in areas at high risk for climate-related threats such as extreme heat, wind, and wildfires. For example, a respective 81% and 60% of homes owned by Black households are at risk of heat and wind-related hazards. Similarly, 77% of Hispanic-owned homes are exposed to heat, and 25% are exposed to wildfire-related risks. In contrast, just 32% of homes owned by white households face major wind risk, while a respective 18% and 52% are at risk of heat and air-quality issues.

White homeowners own the most homes overall, but a smaller share of their homes face each individual type of climate risk.

Why does this matter?

The report states that, "The disproportionate burden of climate risk on minority homeowners has the potential to exacerbate financial inequality between racial groups." Many minority groups have historically been financially disadvantaged, and now the effects of climate hazards have the potential to make that racial wealth gap even wider. 

In some locales, these disproportionate effects may be due in part—as in the case of flood risk—to historical discrimination and patterns of resource allocation whereby "minorities and other vulnerable communities face a higher risk of flooding because they are more likely to live in lower-lying, risk-prone areas that have received less investments and therefore have deteriorating infrastructure," the report says. 

What are the effects of climate hazards for homeowners?

  • Increased cost of homeownership due to: rising insurance rates, higher energy costs for heating/cooling homes, the cost of repairs/rebuilding after a climate-related natural disaster. 
  • Slower sales and larger discounts for homes located in areas that are at greater risk. This limits the ability for many people to move to other locales and also adds pressure on the housing market. 

Taking a closer look: Comparing national and local statistics

Importantly, the report notes that national and local statistics can tell very different stories:

When it comes to homes at major risk of flooding, at the national level, that risk is fairly evenly balanced across racial groups, with 12% to 14% of homes owned by white, Black, Hispanic, and Asian American households at risk of flooding. But a look at local statistics is telling:

  • In the New Orleans metro area, 95% of Asian-American homeowners, 92% of Black homeowners, and 86% of Hispanic homeowners face major flood risk. Compare that with the 76% of white homeowners in New Orleans who face risk of flooding.
  • Meanwhile, in Florida, the opposite holds true, the report finds. The coast is a desirable place to buy, with waterfront property commanding higher prices. And, as a result of the racial wealth gap, white homebuyers can more often afford these pricey coastal homes than Black or Hispanic buyers. The upshot is that in Florida metros such as Jacksonville, Miami, and Tampa, a greater share of white homeowners face major flood risk in coastal housing markets. 

The report also finds that climate risk affects the livability of homes for different racial groups.

How climate risk affects housing and homebuyers

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