Overview

• First Street's latest analysis reveals that climate-driven foreclosures may rise to 30% of all defaults by 2035, up from 7% today.
• The report estimates $1.2 billion in current annual lender losses from weather-related foreclosures, increasing to $5.4 billion by 2035.
• Flood risk is significantly underestimated, with 17.7 million properties needing mandatory flood insurance—more than double FEMA’s count.
• Rising insurance premiums, tied to extreme weather, are driving up foreclosure rates, with a 1% premium increase linked to a 1% rise in foreclosures.
• NOAA's decision to stop updating its disaster database raises concerns about the accuracy of future climate risk modeling.