Real Estate
Home›Real Estate›Residential›New housing act faces affordability test from rising i…
New housing act faces affordability test from rising insurance risks
Housing costs beyond purchase prices are increasingly driven by insurance costs, which rose 72% in Nebraska and 96% in Iowa in recent years, according to HousingWire.
HousingWire says the 21st Century ROAD to Housing Act, signed into law earlier this month, is a major federal step that aims to lower housing costs by increasing supply and expanding access to financing. The outlet argues the next hurdle is making sure homes stay affordable to own over the long term, not just at closing day.
HousingWire highlights that severe weather risk can raise the total cost of ownership through higher insurance bills and larger out-of-pocket expenses when deductibles increase. It notes insurance costs have risen by 72% in Nebraska and 96% in Iowa in recent years, and points to rising deductibles as another pressure on homeowners.
The piece also warns that physical risk can undermine core assumptions in housing finance, including that homes will remain insurable, financeable, and marketable over a mortgage’s life. It cites a study concluding that disasters can effectively wipe out about one month of every year’s new construction.
HousingWire points to the act’s resilience focus through a three-year authorization of HUD’s Community Development Block Grant–Disaster Recovery program and related minimum construction standards, while arguing resilience should be addressed before disasters occur. It supports public investments that prioritize verifiable resilience standards, citing programs such as FORTIFIED and Wildfire Prepared as examples of practical standards designed to reduce losses from hurricanes, hail, wildfire, and flooding.