As weather-related natural disasters become more frequent and severe, not all homeowners face equal exposure to the risks. A Zillow analysis found that Black and Hispanic homeowners are disproportionately vulnerable to major climate risks like wildfire, wind and extreme heat.
Hispanic homeowners are more likely than white homeowners to own homes at major risk of wildfire, according to an analysis of First Street data displayed on for-sale listings on Zillow. Black homeowners are more likely to face major risks from extreme wind. The racial wealth gap could be a driving factor, with these communities generally having fewer options within reach financially, according to Zillow.
“The disproportionate burden of climate risk on homeowners of color threatens to deepen financial inequality,” Zillow Senior Economist Kara Ng said in a release. “Climate risk is driving up homeownership costs due to rising insurance premiums and potential repair or rebuilding expenses after disasters. These added financial pressures can make it harder for families to build and maintain wealth through homeownership.”
Nationally, 25 percent of homes owned by Hispanic households are at major risk of wildfire. That’s significantly higher than the 18 percent of white-owned homes facing the same level of risk. Among homes owned by Black households, 60 percent face major wind risk, compared with 32 percent of white-owned homes.
Flood risk is fairly balanced across racial groups, according to Zillow. Homes at major risk of flooding make up between 12 percent and 14 percent of homes owned by white, Black, Hispanic and Asian American households. However, in the New Orleans metro area, 95 percent of Asian American homeowners face major flood risk, as do 92 percent of Black homeowners and 86 percent of Hispanic homeowners. Seventy-six percent of white homeowners in New Orleans face the same risk.
The opposite is often true in Florida, where a greater share of white homeowners face major flood risk in large markets near the coast, such as Miami, Tampa and Jacksonville. The racial wealth gap means these homes, which are typically more expensive, are more often within the budgets of white homebuyers than Black or Hispanic buyers.
Climate risk also affects the livability of homes due to extreme heat and poor air quality, according to Zillow. These conditions also disproportionately affect minority groups: 81 percent of Black-owned homes and 77 percent of Hispanic-owned homes face major heat risk, compared with 52 percent of white-owned homes. Asian American households have a disproportionate exposure to poor air quality. Thirty-two percent of homes owned by Asian American households have major air-quality risk — nearly three times the rate for white-owned homes (11 percent).
This research shed light on how climate risk is deepening long-standing housing inequalities, according to Zillow. As natural disasters grow in intensity and frequency, homeowners in high-risk areas see rising costs through higher insurance premiums, greater possibility of repairs and increased energy expenses. These burdens are not distributed equally, and this unequal exposure can limit wealth-building opportunities.