Finance

Millions have moved out of certain parts of the country now designated “Climate Abandonment Areas”

Published

1 year ago

April 23, 2024

Business Finance News

Climate change has driven 3.2 million people out of certain areas of the country. (iStock)

More frequent flooding is leaving lasting damage, even as neighborhoods rebuild. Certain areas of the country are being deemed “Climate Abandonment Areas.” These areas are losing a large percentage of their population entirely due to climate change, specifically flooding, according to a First Street report.

Climate Abandonment Areas include 818,000 U.S. Census blocks. Over 3.2 million people have moved away from these areas between 2000 and 2020 due to flooding damage.

“There appears to be clear winners and losers in regard to the impact of flood risk on neighborhood level population change,” Dr. Jeremy Porter, the head of climate implications research at the First Street Foundation, said.

“The downstream implications of this are massive and impact property values, neighborhood composition and commercial viability both positively and negatively.”

In the next 30 years, current Climate Abandonment Areas are expected to lose more of their populations. The populations are expected to decline by an additional 16%, equivalent to 2.5 million more people.

“The population exposure over the next 30 years is a serious concern,” Evelyn Shu, a senior research analyst at the First Street Foundation, said.

“For decades we’ve chosen to build and develop in areas that we believed did not have significant risk, but due to the impacts of climate change, those areas are very rapidly beginning to look like areas we’ve avoided in the past.”

Having enough homeowners insurance is vital to protect you after a natural disaster. To ensure your insurance is suitable for your circumstances, visit Credible to check out plans, providers, and costs.

CLIMATE DISASTERS ARE DRIVING UP THE COST OF INSURANCE AND IMPACTING HOME VALUES: REPORT

California is one of the states struggling most with rising homeowners insurance rates

Of the 50 U.S. states, California is struggling the most with high homeowners insurance rates. Sky-high homeowners insurance rates are due, in part, to natural disasters like wildfires and mudslides.

Citing the high risk and the costs associated with those risks, State Farm recently announced it will not continue to insure homes in certain areas. It’s cutting 72,000 home and commercial insurance policies. These cuts impact around 30,000 homeowners and rental insurance policies specifically.

“We will continue to work constructively with the California Department of Insurance, the Governor’s Office, and policymakers to actively pursue these reforms in order to establish an environment in which insurance rates are better aligned with risk,” the State Farm press release stated.

Starting July 3, 2024, and continuing through the year, State Farm will begin pulling out of the California homeowners insurance market.

The same issue is happening in Florida, where Progressive has begun to pull some of its insurance policies. Starting in May 2024, to “rebalance their exposure”, they’ll stop renewing some policies.

If you want to find a new homeowners insurance provider that offers lower rates, Credible can walk you through each homeowner’s insurance policy, the coverage they offer and show you the rates you may qualify for.

2023 WAS THE HOTTEST YEAR ON RECORD, DRIVING UP UTILITY COSTS AND HOMEOWNERS INSURANCE PRICES

Homeowners insurance isn’t rising as fast as principal and interest payments

While homeowners insurance rates are definitely on the rise, they’re not rising as much as principal and interest payments on mortgages, a Freddie Mac report found.

The cost of buying a home has skyrocketed over the last few years, largely due to high mortgage rates. That said, homeowners insurance still contributes significantly to the total cost of homeownership.

In 2018, homeowners insurance premiums averaged $1,081 for Freddie Mac borrowers, but in 2023, they averaged $1,522 annually. That’s a 40.8% increase.

Freddie Mac found that in 2018, premiums accounted for 1.49% of borrowers’ incomes. This rose by 10% by 2023 when 1.64% of a borrower’s income went towards monthly premiums.

Certain states pay higher premiums than others. Louisiana, Kansas, Nebraska and Mississippi pay over $8 for every $1,000 in home value. All the while, borrowers from California, Washington, Nevada, Oregon, and Washington, DC all paid less than $2.50 for $1,000, according to the Freddie Mac report.

Comparing multiple insurance quotes can potentially save you hundreds of dollars per year. Luckily, it’s easy to get a free quote in minutes through Credible’s partners.

HOMEBUYERS GAINED THOUSANDS OF DOLLARS AS MORTGAGE INTEREST RATES FALL: REDFIN

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Finance

U.S.-China agree on framework to implement Geneva trade consensus

Published

5 hours ago

June 10, 2025

Business Finance News

U.S. Treasury Secretary Scott Bessent speaks with the media as he departs to return to the U.S., while trade talks between the U.S. and China continue, in London, Britain, June 10, 2025.

Toby Melville | Reuters

The U.S. and China have reached consensus on trade, representatives from both sides said following a second day of high-level talks in London, according to an NBC transcript.

“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” U.S. Commerce Secretary Howard Lutnick said.

That echoed comments from the Chinese side, shared via a translator.

Lutnick said he and U.S. Trade Representative Jamieson Greer will head back to Washington, D.C., to “make sure President Trump approves” the framework. If Xi also approves it, then “we will implement the framework,” Lutnick said.

Earlier, U.S. Treasury Secretary Scott Bessent told reporters he was headed back to the U.S. in order to testify before Congress on Wednesday.

This is breaking news. Please check back for updates.

Finance

Gundlach says to buy international stocks on dollar’s ‘secular decline’

Published

7 hours ago

June 10, 2025

Business Finance News

Jeffrey Gundlach speaking at the 2019 Sohn Conference in New York on May 6, 2019.

Adam Jeffery | CNBC

DoubleLine Capital CEO Jeffrey Gundlach said Tuesday that international stocks will continue to outshine U.S. equities on the back of what he believes to be the dollar’s secular downtrend.

“I think the trade is to not own U.S. stocks, but to own stocks in the rest of the world. It’s certainly working,” Gundlach said in an investor webcast. “The dollar is now in what I think is the beginning of [a] secular decline.”

Gundlach, whose firm managed about $95 billion at the end of 2024, said dollar-based investors who buy foreign stocks could enjoy “a double barreled wind” if the greenback declines against foreign currencies and international equities outperform.

The dollar has weakened in 2025 as Trump’s aggressive trade policies dented sentiment toward U.S. assets and triggered a reevaluation of the greenback’s dominant role in global commerce. The ICE U.S. Dollar Index is down about 8% this year.

“I think it’s perfectly sensible to invest in a few emerging market countries, and I would still rather choose India as the long term hold there,” Gundlach said. “But there’s nothing wrong with certain Southeast Asian countries, or perhaps even Mexico and Latin America.”

The widely-followed investor noted that foreigners invested in the United States could also be holding back committing additional capital due to heightened geopolitical tensions, and that could create another tailwind for international markets.

“If that’s reversing, then there’s a lot of selling that can happen. And this is one of the reasons that I advocate ex U.S. stocks versus U.S. stocks,” he said.

The investor has been negative on the U.S. markets and economy for some time, saying a number of recession indicators are starting to “blink red.”

Gundlach predicted that the Federal Reserve will stay put on interest rates at its policy meeting next week even as current inflation is “quite low.”

He estimated that inflation is likely to end 2025 at roughly 3%, although he acknowledged the difficulty in predicting future price pressures due to the lack of clarity in President Donald Trump’s tariff policy.