What was once rare is now part of the accepted reality in the U.S.: floods that swallow neighborhoods; wildfires spread across dry hills; hurricanes born with incredible speed and force. And it's hitting the housing market harder than ever.
In recent years, the U.S. has endured some of the most destructive weather events in its history, according to Francis Fong, Managing Director and Senior Economist at TD Economics. Weathering the Storm – the Next Phase of America’s Cost of Housing Crisis — a report from Francis and Mekdes Gebreselassie, Economic Analyst at TD Economics — was released earlier this year. It offered a stark message: A rise in extreme weather is impacting housing affordability and potentially placing an ever-increasing number of Americans at financial risk.
In 2024, Hurricane Helene became the seventh most costly Atlantic hurricane on record, with a death toll of 219 people and a financial cost of $78.7 billion in damages to homes, businesses and public properties, according to the TD Economics report. Less than two weeks later, Hurricane Milton struck many of the same areas still reeling from Helene, adding another $34.3 billion in damages.
Other major disasters in 2024 included two record-setting wildfire events in Texas and California that devastated communities and strained resources.
According to data from the National Oceanic and Atmospheric Administration (NOAA), there has been a six-fold increase in both the frequency and the total billion-dollar cost from climate-related disasters from 2015–2024 relative to 1980–1989. During the 2015 to 2024 timeframe there were 190 disasters totaling $1.4 trillion in losses, compared to 33 disasters with $219.6 billion in losses between 1980–1989.
"The frequency and cost of extreme weather events have increased significantly over the past four decades, and there's no sign that trend is going to reverse course,” said Amber Tofilon, Head of U.S. Sustainability at TD Bank. “These costs are compounding the already severe housing affordability challenges we're seeing."
Nearly one-fifth of U.S. counties, which are home to more than a quarter of the population, face increasing flood or wildfire risks that directly push up housing costs, according to the TD Economics report.
"Based on our calculations, 19% of U.S. counties currently exposed to significant levels of unaffordable housing will be significantly exposed to flood and wildfire risks by 2052," Francis stated.
Approximately 9.6 million families coping with high housing costs reside in these counties, which shows the extensive reach of extreme weather, according to Francis.
"Rising home insurance premiums; lack of coverage in some areas; retrofit costs, such as raising homes in flood prone regions; and high restoration/relocation costs make situations worse for the financially constrained," he said in the report.
TD aims to help people prepare before disasters occur
For millions of families already juggling rising prices, higher interest rates and tight household budgets, a natural disaster can be financially devastating.
"Housing is the single greatest expense for most people," Amber said. "If a homeowner or renter is already stretched thin, a storm or wildfire that causes major damage to their residence can push them past the breaking point."
As Francis pointed out, that challenge is only exacerbated for low- to moderate-income families because making a home more disaster-resistant can be prohibitively expensive.
“Financial limitations can restrict their ability to implement preventative measures such as retrofits or keeping up with rising insurance premiums,” Francis said.
That's why TD isn't focused solely on helping people buy homes but is helping current homeowners stay in them. Through financial education that focuses on building financial resilience and other homeowner-centered coursework adopted by TD, including the American Bankers Association’s instructor-led course on how to maintain sustainable living, TD aims to help homeowners prepare before disasters hit.
Extreme weather events also affect housing affordability for renters. When building owners and landlords face damage from these events, they often incur significant costs for repairs and insurance and may raise rents to recoup their losses. With rents already high in many areas of the country, this potentially puts more financial pressure on renters.
“Climate resilience and housing affordability have to be part of the same conversation,” said Galen McNally, Manager, U.S. Sustainability at TD Bank.
A key challenge is that individual homes, condominiums and apartment buildings that were built decades ago were not designed for today’s or tomorrow’s storms.
“If a homeowner or building owner can't afford to retrofit the residence, manage rising insurance costs or repair after a disaster, then stable housing becomes even more precarious for a rising number of Americans," Amber said. "As federal, state and local governments as well as other advocates work to increase housing supply, thoughtful planning for design and materials can help lessen the impact of future weather events.”
Affordable, climate-resilient housing helps families build long-term financial stability and strengthens entire communities for renters and owners. "It's foundational to inclusive economic growth," Amber said.
How homeowners can weatherize their homes
There's no way to fully disaster-proof a home, but there are ways to help reduce damage and save money after a major weather event. Here are some tips from federal government sites and the Sustainability team at TD Bank:
Stay Weather-Aware
- Know the risks in your region.
- Monitor weather and safety alerts when storms or fires threaten. Utility companies often have alerts you can sign up for that notify you of inclement weather and the possibility of outages. Another valuable resource for those who live in flood zones is the Federal Emergency Management Agency (FEMA) Flood map. It provides information on current flood conditions and areas that may be impacted.
Create Flood Protection
- Elevate electrical outlets and panels, HVAC systems and water heaters.
- Build, renovate or repair your home using flood-resistant insulation and drywall.
- Consider installing new technology, such as a solar energy system with a battery backup, to keep power on during outages.
Build Wildfire Defense
- Install an outdoor water source with a hose that reaches every area of your property.
- Try to maintain a fire-resistant zone free of leaves, debris and flammable materials at least 30 feet from your home.
- Build, renovate or repair your home using fire-resistant materials.
Review Insurance
- Understand what your homeowners or renter’s insurance policy covers.
- Consider supplemental insurance like flood coverage in higher-risk areas.
Check Government Financial Resources
- Some states and local governments offer financial assistance to help with costs of renovations designed to mitigate the impact of weather events. Check their websites for more information about the types of programs available, the eligibility criteria and how to apply.
Stay Informed
We hope you found this helpful. This article is for informational purposes only and is based on information available as of December 2025 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.
No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. All rights reserved.
©2025, TD Bank, N.A and/or its affiliates. All rights reserved.
The TD logo and other TD trademarks