Housing affordability and family economic security remain critically pressing issues nationwide. Too often, however, housing supply strategies overlook long-term costs including insurance, natural disaster exposure, maintenance, and utilities. These costs affect the long-term affordability of homes for families, and constrain new supply. As extreme weather increases in intensity and frequency across the U.S., and insurance and utility expenses demand a larger fraction of household costs, state and local governments have been implementing innovative solutions to holistically address affordability, resiliency, and insurability to both increase new housing supply and preserve existing housing. Cost-effective, common-sense construction methods that make buildings more energy efficient, stronger, and better able to withstand extreme weather often work in synergy, multiplying co-benefits. Such measures also improve insurability, prevent deaths in extreme heat, increase resiliency of the electric grid, extend housing durability, and lower emissions and energy costs.

This set of tools addresses the true cost of housing in a changing climate and how housing retrofits and resiliency upgrades, as well as codes and standards for new housing, can reduce long-term costs for residents and bolster insurance and mortgage markets to grow and preserve housing supply.

The Challenge This Tool Solves

Every year, the U.S. loses the equivalent of one month’s worth of new homes to climate disasters and an additional 350,000 homes to disrepair. In 2024, property damage from climate disasters reached $182.7 billion, and in the past five years, home insurance premiums have increased by 61%. The insurance industry is increasingly unable to cover new risks, not just in disaster zones but across entire regions or states. In February 2025, Federal Reserve Chair Jerome Powell testified before the Senate that “if you fast-forward 10 or 15 years, there are going to be regions of the country where you can’t get a mortgage, because of climate change.” As Accelerator for America outlined in “Insuring the Future of Our Communities,” Local and state leaders, in collaboration with the federal government and insurance industry, must take proactive steps to make sure places across the country do not become “insurance deserts,” with no or limited affordable coverage options available to residents and businesses.

Types of Communities That Could Use This Tool

All communities could benefit from programs to improve the resilience and expected lifespan of their housing stock as extreme weather becomes more frequent across the country. In particular, coastal towns vulnerable to hurricanes and storm surges, wildfire-prone areas, and regions facing frequent flooding or heatwaves that may be exacerbated by climate change will benefit. Low-income and historically underserved neighborhoods can especially benefit, as such communities tend to be located in areas of greatest physical risk and residents often lack the resources to invest in protective measures or recover quickly after disasters, or may be unable to afford insurance premiums unless upfront investments in resilience are made. Furthermore, rural communities with limited access to emergency services also stand to gain significantly. Making homes more resilient protects lives and property and promotes the long-term stability of families and homes in those communities.

Expected Impacts of This Tool

Tens of thousands of homes have already been built and retrofitted to common-sense standards, because the economics of lower energy costs and resilience work over the long run. Estimates suggest that every $1 invested in meeting modern building codes provides $11 in savings by reducing storm damage. The following policies and programs are designed to create a long-term, affordable housing supply nationwide, even amidst growing challenges from extreme weather events and high insurance and utility costs. When effectively implemented, these tools can help reduce housing costs, extend the longevity of the housing supply, and strengthen resilience, ultimately minimizing the risk to lives and property.