“Climate change to obliterate $1.5 trillion in U.S. home values”
What actually happened
First Street Foundation, a climate-risk research group, released a report projecting that increasing climate risks could reduce national residential real property values by $1.47 trillion by 2055, or 2.9% of the current value. The article itself notes this is a net figure: as property values across the country decline by almost $1.5 trillion in total, other properties will increase in value to the tune of $244 billion, meaning the losses are concentrated rather than universal, and are partially offset elsewhere.
Key facts
- Headline figure: $1.47 trillion projected decline in U.S. home values by 2055, equal to 2.9% of current national residential property value, per First Street.
- $244 billion in offsetting gains in other properties over the same period, per the article's own reporting of the study.
- Insurance premiums projected to rise an average of 29.4% nationwide by 2055, with far steeper regional spikes: over 4x in Miami, roughly 3x in Jacksonville, Tampa, and New Orleans, and a doubling in Sacramento.
- 55 million Americans projected to relocate within the U.S. over the 30-year period due to heat, wildfire, and flood risk, starting with more than 5 million in 2026.
- Some counties in California, Florida, and Texas projected to see 10% to 40% net declines in property values by 2055, meaning the pain is geographically concentrated, not evenly spread.
- The three biggest Sun Belt states have accounted for more than 40% of the country's $2.8 billion in natural disaster costs since 1980, per the study as reported.
What to watch for
Watch whether follow-up coverage reports the 2.9% national context or keeps repeating the raw trillion-dollar figure in isolation. Also watch how the $244 billion in gains gets treated, since a "winners and losers" reshuffling of real estate value is a materially different story than a straight national wipeout. Future First Street updates or competing models (Moody's, CoreLogic) may narrow or widen this range and are worth cross-checking.
