Dear friend,

Welcome to Frontier, the monthly newsletter from the Future of Land and Housing Program at New America. This month, we're taking a break from our regular updates to reflect on how the historic climate change legislation signed by President Joe Biden this week impacts land and housing in the U.S.

The Inflation Reduction Act of 2022 (IRA), signed into law on Tuesday, represents the largest climate spending package in U.S. history. With $369 billion dedicated to climate and energy provisions, it lays the groundwork to mitigate some of the incremental and slower-moving impacts of climate change like temperature and sea level rise. According to an independent analysis, the law has the potential to reduce the country’s greenhouse gas emissions by 31 to 44 percent from peak levels by 2030. 

And while the Inflation Reduction Act lacks the nearly $170 billion for affordable housing included in the original Build Back Better legislation passed by the House last November, the law's climate provisions will likely improve the housing security of millions of Americans over the coming decades. That’s because for many Americans, our home is where we will feel the impacts of climate change for the first time, and the most acutely. 

Photo Credit: Paul McKinnon

To start, the Inflation Reduction Act will directly reduce housing costs for some Americans, through tax breaks and rebates for home upgrades. Households that install efficiency-focused upgrades like rooftop solar panels, electric induction cooktops, and heat pumps could save on average between $170 to $220 a year. Other estimates suggest that changes made by households could save anywhere from $1,800 to $10,000 per year.

For the majority of Americans living paycheck to paycheck, these savings will free up funds for rent and mortgage payments.

Perhaps even more important than these immediate savings, this law can play a major role in mitigating the severe housing insecurity that millions of Americans on the coasts and in other vulnerable areas are set to experience in the coming years, as a result of climate change. For example:

• By decreasing carbon emissions in the U.S. by roughly 40 percent, the 300,000 American homes projected to experience chronic flooding by 2045 due to climate-driven sea level rise will have more time to adapt and mitigate temporary or permanent displacement. This change will be even more pronounced if other high emitting countries enact similar legislation. 

• One-third of all homes in the U.S. are at high risk of a natural disaster, including earthquakes, wildfires, hurricanes and tropical storms. The severity of these risks are only intensified by higher temperatures, but reductions in emissions can help diminish the threat of these disasters, and shield more Americans from housing cost increases due to home repairs resulting from damages. 

• The Western U.S. is facing an unprecedented drought threatening many water insecure communities. The IRA provides $4 billion to help the Colorado River Basin states mitigate the impacts of climate-driven drought, which could allow thousands of families to remain in their homes and avoid the need to relocate. 

Housing costs are the greatest monthly expenditure for most Americans, and for many, homes are our largest asset. The loss of a home--be it for financial reasons, or due to the impacts of a weather disaster or sea level rise--results in severe and cascading impacts on physical and mental health, children's educational outcomes, job performance and security, and economic prospects. 

Climate change drives up the costs of housing and utilities, and severely increases the risk of sudden home loss. Whether it's weatherproofing to adapt to flooding, migrating from more frequent and powerful storms, or struggling to secure a mortgage or homeowners insurance in a climate-vulnerable region, these impacts start with homes we inhabit. 

For these reasons, land and housing are integral to any thinking about climate change mitigation and adaptation. The FLH team is excited to continue reimagining housing security in the U.S. and globally, within the context of this sweeping law and beyond. 

Are you working at the intersection of climate, land and housing? We’d love to know what you’re up to. Reach out to us at FLH@NewAmerica.org or tag us at @FLHatNewAmerica.

Until next month, the FLH Team. 

About New America

New America is dedicated to renewing the promise of America, bringing us closer to our nation’s highest ideals. We’re a different kind of think tank: one dedicated to public problem solving. Our team of visionary researchers, changemakers, technologists, and storytellers study and seize the opportunities presented by dramatic social and technological change. We search for powerful ideas, wherever they are, and collaborate with civic innovators around the world to develop evidence-based solutions.

The Future of Land and Housing Program at New America aims to help solve today’s land and housing rights challenges, both in the United States and internationally. Through our research and writing, convening, and collaboration with civic innovators worldwide, we strive to connect new constituencies, shed light on underreported issues, and implement creative approaches in the property rights space.

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