Homelessness is not only a result of financial instability. The fires in Altadena and Pacific Palisades, California, displaced tens of thousands of people, while Hurricane Helene significantly impacted housing in western North Carolina. We estimate the climate-related devastation in Altadena, Pacific Palisades, and western North Carolina destroyed over 140,000 homes (see Table 1).
Table 1. Number of Housing Units Damaged or Destroyed in Natural Disaster
With their residence destroyed, survivors may experience sheltered homelessness – temporary habitation in hotels, couch-surfing, or doubling up with friends and family. However, western North Carolina, which had a median household income of $47,640 in 2020—$8,000 below the state average—was already facing an increase in homelessness, exacerbated by Hurricane Helene. When large populations are displaced rapidly, temporary homelessness can turn chronic from a lack of rental housing, insufficient insurance coverage, and limited government support for rebuilding.
Build Back Or Rent
State Farm, the biggest insurer in California, cited “inflation, catastrophe exposure, and reinsurance costs” as reasons for not renewing 72,000 policies and requested approval to increase rates by an average of 22%. This decision could significantly impact Altadena, a community transformed by The Civil Rights legislation of 1960 and went from being 95% White in 1960 to a more diverse suburb by 2023 (see Table 2). Rising insurance premiums in Altadena can make rebuilding devastated homes unaffordable, forcing families to move away and changing Altadena’s demographics.
Table 2. Altadena, California Race & Ethnicity, Gender, and Homeownership Demographics
Families may opt to rent instead, but the wildfires have intensified the housing shortage in Los Angeles, with costs of some rentals increasing by 20%. The competition for rental units from people with income will likely increase the cost of rentals and out-price current renters.
Bridging the Gap
There is a significant service gap for individuals experiencing temporary homelessness. In 2024, homelessness increased by 18%, the highest increase since its prominence in the 1980s, following substantial cuts to funding for housing programs and social services during the Reagan administration.
Addressing this gap requires building climate-resilient communities and services for those experiencing temporary homelessness. Indigenous fire prevention tactics, like controlled burns, have effectively promoted ecological diversity and reduced the risk of catastrophic wildfires. Designing homes in North Carolina to withstand hurricanes and floods will be essential for resilience to extreme weather conditions and prevent more families from becoming unhoused.
I doubt I’ll be able to purchase a home in my lifetime, and I’m not alone. Eighty percent of Americans living in rural communities believe housing affordability is worsening, and about 72% of residents in Urban areas agree. The lack of affordable housing stock may contribute to this pessimism about homeownership. Recent estimates show that the United States has 3.8 million fewer homes than needed, with companies like Airbnb exacerbating America’s housing crisis, where property owners make more money off shorter stays, and investors are reducing the stock of affordable rentals and houses for purchase.
To combat this, we need policies that ensure affordable insurance for homeowners while keeping insurance companies profitable. Entrepreneurs must invest in rental properties without significantly reducing housing stock for rental or purchase. When a natural disaster hits your neighborhood, you may experience the hardship of temporary homelessness, so it’s important for us to build better safety nets for environmentally vulnerable communities.
