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Americans Are Concerned About Climate Change’s Impact on Housing

Some Americans are considering moving now or in the future as a result of natural disasters and insurers’ efforts to cut coverage, writes energy & auto analyst Julia Martinez
Getty Images / Morning Consult artwork by Kelly Rice
July 10, 2023 at 5:00 am UTC

Key Takeaways

  • About half of U.S. homeowners (51%) are concerned about the issue of climate change and the impact it’s having on their housing.

  • Natural disasters, which are becoming more common due to climate change, are pushing around a quarter of U.S. adults to reconsider where they live.

  • More frequent natural disasters will continue to impact insurance premium costs and affect coverage in hard-hit areas.

Wildfire season is in full effect, and Canada has already recorded its worst season on record. Stateside, California residents received a rude awakening when State Farm announced in late May that it would no longer accept new applications for homeowners insurance policies in the state. The company cited “rapidly growing catastrophe exposure” as one of the reasons, along with the high cost of rebuilding.

Since that decision, other insurers are starting to follow suit. Home insurance premiums in some particularly hard-hit areas are becoming costlier or even nonexistent, and homeowners are taking note.

Specific demographics at scale: Surveying thousands of consumers around the world every day powers our ability to examine and analyze perceptions and habits of more specific demographics at scale, like those featured here.

Why it matters: Leaders need a better understanding of their audiences when making key decisions. Our comprehensive approach to understanding audience profiles complements the “who” of demographics and the “what” of behavioral data with critical insights and analysis on the “why.”

Morning Consult data shows that many homeowners are concerned about the impact that climate change, which is leading to longer drought seasons that provide fuel for wildfires, is having on their housing. 

Homeowners — and even renters — are concerned about climate change’s impact on housing

While just over half of U.S. homeowners (51%) are concerned about climate change’s impact on their housing, the concern is slightly higher among renters (56%), who already face the hardship of trying to save money to buy a home while paying high and rising rent prices. Individuals who live in the Northeast (57%) and West (57%) are slightly more likely to be concerned about climate change’s impact on housing than those in the South (53%) and the Midwest (44%).

More Than Half of U.S. Adults Are Concerned About Climate Change’s Effect on Their Housing

Shares of U.S. adults who said whether they are concerned about the issue of climate change and its impact on their housing
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Survey conducted June 14-17, 2023, among a representative sample of 2,204 U.S. adults, with an unweighted margin of error of +/-2 percentage points. Figures may not add up to 100% due to rounding.

While western states are more prone to wildfires, the Northeast recently experienced the effects of lingering smoke from Canadian wildfires, which prompted severe air quality alerts across the region and forced people to stay indoors. Climate experts warn that even areas that aren't prone to wildfires could face more smoky days in the coming years as climate change exacerbates the amount of wildfires in the Canadian wilderness.

Among generational demographics, millennials are most likely to be concerned with the impact of climate change on housing, at 61%. This likely stems from the fact that millennials have regularly ranked as the top homebuying generation for the past decade and tend to be more concerned about climate change in general than other generations, per Morning Consult data.

Meanwhile, more than half of Gen Zers (54%) are concerned about climate change’s impact on housing, while Gen Xers (50%) and baby boomers (49%) have slightly lower levels of concern. 

Natural disasters are driving some Americans to consider relocating

While natural disasters continue to be problematic, they aren’t forcing the bulk of the public (or homeowners) to consider moving to safer havens yet. However, younger generations appear more likely to weigh potential relocations: 43% of Gen Zers and 37% of millennials — as well as 32% of renters — said they are considering moving now or in the future due to the impacts of natural disasters.

1 in 4 Adults Have Thought About Moving Because of Natural Disaster Impacts

Shares of U.S. adults who said whether they have considered moving because of the impacts of natural disasters in their region
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Survey conducted June 14-17, 2023, among a representative sample of 2,204 U.S. adults, with an unweighted margin of error of +/-2 percentage points. Figures may not add up to 100% due to rounding.

Floods remain the top concern for around 1 in 3 homeowners (32%) when it comes to their ability to insure their homes against natural disasters, while wildfires and hurricanes are a concern for about 1 in 4 homeowners. Among the generations, Gen Zers are twice as likely as baby boomers (42% versus 21%) to have concerns about insuring against wildfires. 

Homeowners and insurance companies will have to adapt quickly

In the future, there will be no shortage of natural disasters — from wildfires and hurricanes to heat waves and blizzards — that affect swaths of the United States. 

Climate change’s impact on housing is already being felt in some areas. Oceanfront houses in locations such as North Carolina’s Outer Banks have collapsed into the sea, and last year more than 2,700 structures — nearly half of which were residences — burned in U.S. wildfires. 

Homeowners will be forced to grapple with a dwindling supply of insurers that are willing to cover homes in regions that are becoming riskier because of climate change. Meanwhile, the federal and state governments should also look for ways to help where they can, despite the exorbitant costs and mounting delays associated with rebuilding in increasingly risky areas. 

A headshot photograph of Julia Martinez
Julia Martinez
Energy & Auto Analyst

Julia Martinez previously worked at Morning Consult as an energy & auto analyst on the Industry Intelligence team.

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