 Climate risks in US housing and mortgage marketsToàn Phan Chapter 22 in Research Handbook of Macroprudential Policy, 2026, pp 514-521 from Edward Elgar Publishing Abstract: Real estate, a cornerstone of global financial markets, is increasingly exposed to climate-related risks, particularly sea level rise and extreme weather events. This chapter examines how these risks influence the US housing and mortgage markets, with implications for financial stability. Empirical evidence indicates that climate risks are beginning to be reflected in property valuations, yet significant inefficiencies persist due to heterogeneous risk perceptions and regulatory gaps. A key finding is the strategic transfer of climate risks through mortgage securitisation, where lenders and borrowers shift exposure to government-sponsored enterprises. Additionally, financial institutions are adapting to climate risks through credit rationing and portfolio adjustments. The chapter highlights the urgent need for enhanced risk disclosure and regulatory frameworks to mitigate systemic vulnerabilities. It concludes by outlining critical areas for future research, including the development of macrofinance models that better capture climate-related financial risks and their propagation mechanisms. Keywords: Climate risk; Housing market; Mortgage securitisation; Financial stability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22037_23 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Chapters from Edward Elgar Publishing |
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