Major home insurers are declining to renew policies in high-risk climate areas like parts of California and Florida. As insurance becomes unaffordable or unavailable, many homeowners will be forced to abandon their homes, exacerbating the affordable housing crisis. Government investments during the pandemic slowed the rise in homelessness, but high interest rates are again making home buying difficult. A new report finds insurers are refusing to renew nearly 800% more policies in some California zip codes due to increasing wildfire costs and damage. If left unaddressed, the climate insurance crisis could drive more migration to already expensive urban areas, further increasing housing prices and homelessness.

To mitigate worsening conditions, governments must work to enable sustainable high-density development and provide direct housing assistance and payments to Americans impacted by the effects of the climate crisis on their homes and communities.