Harvard study: Renters in two states at highest risk from climate hazards
Multiple regions across the United States have been identified as susceptible to extreme weather hazards, as indicated by a data analysis conducted by scholars at Harvard University. However, the concentration of exposed rental units is notably high in specific states. According to the American Rental Housing Report from Harvard University’s Joint Center for Housing Studies, over 18 million rental units are situated in areas vulnerable to extreme weather hazards.
The distribution of exposure is not uniform across states. While most states contain at least one “high-risk” county with 2,000 or more rental units, a significant concentration is observed in California and Florida. Harvard researchers utilized data from the Federal Emergency Management Agency’s National Risk Index in combination with the five-year American Community Survey to identify rental units in areas projected to experience annual economic losses from environmental disasters like wildfires, flooding, earthquakes, hurricanes, and more.
Areas classified as high-risk are those with a “relatively moderate,” “relatively high,” or “very high” anticipated annual loss. Sophia Wedeen, a research analyst specializing in rental housing, residential remodeling, and affordability at the Joint Center for Housing Studies, highlighted that the map illustrates the number of rental units located in regions with at least moderate risk.
The researchers at Harvard determined the number of rental units exposed to climate hazards in the United States by merging an area’s risk of economic loss from natural disasters with the quantity of rental units in those areas. For instance, Florida and California emerged as hot spots due to the substantial number of rental units in census tracts identified by FEMA as having moderate risk.
In California, 4.6 million rental units, representing 77% of the state’s rental stock, are situated in census tracts facing potential annual economic losses due to climate-related hazards. Similarly, Florida has 2.4 million rental units at risk, accounting for about 89% of its rental stock, according to the findings of the Harvard study. As the exposure of areas to climate-related risks increases, experts emphasize the importance for renters to consider renters insurance and comprehend the coverage provided by such policies. Landlords and building owners are responsible for physical damage to the building or unit caused by natural disasters, but tenants’ personal belongings are not covered by their property insurance. Renters insurance typically covers losses or damages to personal property and may include living expenses during temporary housing needs. Renters are advised to review their insurance policies to ensure coverage for risks like flooding or earthquakes and explore insurance options before leasing in high-risk areas. Jeremy Porter, head of climate implications research for First Street Foundation, stresses the significance of understanding the climate risks associated with rental properties and making informed decisions regarding protection measures.
