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More Americans are moving to areas with higher climate risks

Oct 16, 2024, 7:28am EDT
net zeroNorth America
A view of a damaged building of Al’s Family Farms, a business which Jeff Schorner lost following Hurricane Milton landfall,
Jose Luis Gonzalez/Reuters
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US citizens have been moving towards areas with greater climate risks.

People have been leaving the big northern and northeastern cities since the 2010s, but that migration sped up after the COVID-19 pandemic, the Financial Times’ global business editor noted, as both house prices and remote-working opportunities have increased. Some southern states have lowered taxes and regulations to attract businesses and workers.

But insurance analysis showed that it meant the flow of people from low to high climate risk areas had doubled: 40% now live in hurricane-prone regions, and migration to wildfire regions is up 146%.

The combination of increasing risk and increasing numbers exposed to that risk is driving up insurance costs: Premiums are up 33% since the pandemic. Hurricane Milton is expected to cost insurers $36 billion in payouts.

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