Hurricane Ian damage and recovery are set to make wealth disparities worse
Hurricane Ian damage and FEMA recovery in Florida, South Carolina will show how climate change is making wealth disparities worse.
Hurricane Ian has already caused at least 34 deaths, and early numbers suggest that financial losses could hit $40 billion. But these numbers tell only part of the story. What they don’t reveal is how Ian will lead to growing inequality, and heighten racial disparities.
Research from across the United States shows that climate-related disasters have made our communities more unequal. Put another way, climate change is increasingly becoming a cause of inequality. Part of the problem is our existing recovery policies, which do not distribute post-disaster aid in fair or equitable ways. For example, Black households affected by disasters have often received less aid from the Federal Emergency Management Agency compared with their white counterparts, and in communities that have gotten more FEMA aid, the racial wealth gap has grown.
More recovery dollars have been invested in white communities, which has helped housing values bounce back there.
These disparities stem, in part, from different rates of post-disaster property inspections conducted by FEMA across racial groups, as well as the burden of the application process in applying aid. Overall, more recovery dollars have been invested in white communities, which has helped housing values bounce back there.
Typically, home values decline in the immediate aftermath of a flood. After Superstorm Sandy hit New York, there were large drops in home values for properties that flooded. Even properties that didn’t flood during the storm but were in nearby flood zones saw a significant decrease in values, demonstrating how the housing market can be quite reactive to climate-related disasters.
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