How Climate Change is Driving Black Families in Altadena into Foreclosure and Displacement

Six months after a wildfire hit Altadena, California, many Black families are now at risk of losing their homes. The combination of insurance gaps, expired moratoriums, and corporate buyers is leading to an alarming rise in post-disaster foreclosures.

More than half of the homes in pre-foreclosure due to the Eaton Fire belong to Black families, even though they account for less than 20% of Altadena’s population. This disparity highlights a concerning trend in the housing market.

Since January, corporate investors have purchased about half of the nearly 150 properties damaged by the fire. This shift is rapidly changing who owns homes in the area, pushing out long-time residents.

Climate change is a major factor here, driving a rise in mortgage losses and foreclosures. Recent studies suggest that by 2035, up to 30% of foreclosures could be tied to extreme weather events. As Jeremy Porter, an expert in climate risk from First Street, stated, “Mortgage markets are now on the front lines of climate risk.” His work indicates that physical climate threats are reshaping how loans and property values are assessed.

This shift is significant. Disasters like wildfires and floods disproportionately impact Black communities, which already struggle with wealth and homeownership gaps. When disaster strikes, families often face tough choices: they can either spend money on repairs and temporary housing or sell their homes at a loss. In Altadena, where insurance is hard to come by and rebuilding can take years, many choose to sell, leading to foreclosures and attracting corporate buyers.

This isn’t just a local issue. Across disaster-prone areas, similar patterns are emerging, widening the racial wealth gap. Communities that already face economic challenges are finding it even harder to secure their homes in the face of changing climates.

For further details on how wildfires are impacting communities like Altadena, you can read more from Capital B News.

Source link

climate change, environmental justice, public health