5 Things That Climate Change Is About To Make More Expensive
Written by
Laura Bogart
Edited by
Jordan Rosenfeld
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If you’re even a casual news watcher, odds are you’ve heard a thing or two about climate change. Heck, if you’ve gone outside in the late fall only to find that you need a tank top instead of a scarf, then you already know climate change is real — and it’s here.
Of course, it’s an understatement to say that climate change will have major impacts on every aspect of life moving forward, and not just in terms of contending with extreme weather. The ways that climate change will hit everything from housing to manufacturing will also create a tempest in your wallet.
GOBankingRates took a look at some of the items that climate change will make more expensive over time.
Manufacturing Materials
According to Cassie Sheets, data journalist at Insurify, the severe weather events associated with changing climate could cause significant disruptions to the cost of materials in automotive manufacturing and home building.
“Resilient construction can help mitigate climate damage, but resilient building materials are a little more expensive,” she said. “Building codes across the U.S. are enforced locally, so governments in the most vulnerable areas may strengthen the codes as homeowners in their states experience more catastrophic losses. Long-term, resilient construction pays off in the event of a natural disaster.”
Home Insurance
When you think about how climate change can blow a big hole in your insurance premiums, you probably consider the financial impact of direct property damage. However, Sheets said climate change has contributed to a decrease in the overall stability of monthly housing costs from one year to the next.
“Between 2021 and 2023, home insurance premiums increased by nearly 20%, partially due to changing weather conditions. As home insurance costs continue rising, homeowners will need to plan for those bigger increases in their monthly expenses, and we’ll see more people shopping around for better rates,” she added.
Utility Bills
If you’ve had to crank your air conditioner back up in November, then you’re well aware that climate change can make your utility bills far pricier than they usually are.
As co-founder and CEO of REAI, Inc., an AI platform that serves real estate agents, buyers, sellers, renters and third-party service providers, James Wang is very aware of how a heat wave can be a real scorcher for utilities. Wang cited the expense of double-layer (or double-glaze) windows to keep out the heat, not to mention the higher air conditioner bills.
Likewise, bitterly cold temperatures can also freeze out potential savings in your utility bills. Max Veggeberg, CEO and founder of Tetra, said that in extreme weather, HVAC systems require more energy to maintain livable temperatures, which can lead to higher energy costs.
“In the Northeast, where more homes more commonly lack A/C and heat waves are at an all-time high since 1994, appliances like heat pumps are more appealing than gas-powered boilers or furnaces, since they provide cooling and heating,” he added. “Investigating and installing new HVAC in homes comes with a cost for homeowners, but some states have rebates and tax incentives to encourage these eco-friendly renovations.”
Home Repairs
Unfortunately, air conditioner bills aren’t the only aspect of home ownership poised to spike in price in extreme heat. Wang shared that heat alone can cause harm to your home that you’ll need to pay to have fixed.
“Outer walls and roofs are also susceptible to more wear and tear and damage due to the severe heat wave in summer, resulting in more frequent maintenance or replacement,” he said.
He also added that the price of maintaining your lawn and yard — let alone making it the envy of the neighborhood — will jack up your water bills.
Taxes and Fees
With pressure from the public mounting, many governments and local authorities are putting forth new bills, rules and regulations that can also have a financial impact on consumers, residents and homeowners.
“The upcoming Carbon40 Initiative will also add responsibilities and financial burdens to residents, in that to reduce carbon footprint, homeowner have to be careful in any carbon burning for cooking [or] heating by reducing or totally eliminating carbon burning going forward, which also means replacing the needs with other equipment that will sure add costs and expenses for homeowners,” Wang said.
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