American homes in flood zones are overvalued by hundreds of billions of dollars, according to a study published on Thursday in the journal Nature Climate Change. Low-income homeowners in states controlled by Republicans are especially at risk of seeing their home values deflate as global warming accelerates.
Flooding is a costly and deadly natural hazard across the United States. For decades, the Federal Emergency Management Agency offered flood insurance at discounted rates, incentivizing developers to build houses in flood-prone areas. The agency's flood maps are also notoriously outdated. That has led to a dangerous situation for homeowners as they grapple with year after year of debilitating floods.
