2025-10-22
Homeowners are paying a climate “disaster penalty” as climate-driven floods become more frequent and severe, according to a new report published by the Climate Council and Prop Track.
The report, which analysed more than two decades of property data, found that a million Australian households are already impacted with homes in flood zones collectively worth about $42 billion less due to the risk of floods:
- Homeowners are effectively paying a “disaster penalty” of about $75,000 for a typical 3-bed, 2-bath house.
- As climate-driven floods become more frequent and severe, more properties could face steeper penalties.
- Households in Queensland and New South Wales are the hardest hit, followed by Victoria.
- Overall rising property prices are masking the fact that flood-prone properties start from a lower value and experience slower growth.
The Greens say urgent action is needed from the Government to address the climate crisis and the housing crisis hitting Australians.
Lines attributable to Greens spokesperson for housing, homelessness and finance Senator Barbara Pocock:
“We’re in a housing crisis, and the increasing frequency and intensity of climate-driven disasters is making the housing crisis worse. The crisis is making more homes uninsurable and uninhabitable and it is lowering the value of homes in flood prone areas affecting many lower income households and widening inequality.
“Homeownership is already out of reach for so many Australians. Climate-driven events hiking the cost of insurance and making many properties unoccupiable is making our housing crisis worse.
“This is further proof of where this Government’s priorities lie: Appease the coal and gas corporations while ignoring the costs of climate impacts on Australia’s households.
“Many households across the country spend decades saving for their home deposit and then face high recovery costs and insurance premiums arising from climate-driven disasters. Why should Australians continue to bear the costs of decades of government inaction on climate change?
“Labor are captured by the interests of coal and gas corporations which mean that they prioritise polluters’ profits ahead of a safe climate future for everyday Australians and nature.
“The Government’s own Climate Risk Assessment Report shows 1.5 million people are at risk of their homes flooding or falling into the sea in the next 25 years. However, the Prime Minister doesn’t want to know about it.
“Labor must deliver a truly ambitious climate target based on science and based on the avoided cost of disasters that are putting too many of us at risk.
“We have existing, affordable technologies that could deliver over 85% emissions reduction and, with the Greens, Labor has the numbers in parliament to be truly ambitious on climate.
“Labor must stop approving new coal and gas.”
Lines attributable to Greens Deputy Leader & Spokesperson for Climate Adaptation, Resilience & Emergency Management, Senator Mehreen Faruqi:
“People are buckling under the combined stressors of the housing and insurance crises, and the trauma of climate disasters destroying their homes and lives.
“It should be climate polluting fossil fuel companies paying the costs of climate-fuelled disasters, not families, communities, renters and retirees who are bearing the brunt of the housing and climate crises.
“Report after report reinforces what scientists and people on the front line of climate disasters have been demanding: the strongest action to tackle the climate emergency is needed urgently.
“Insurance has become a major stressor for at-risk communities as it becomes increasingly unaffordable or unavailable, with insurance companies either pulling out or hiking premiums and making people's lives even harder.
“Labor needs to stop pouring fuel on the fire of the climate crisis. That means taking every action to transition away from coal and gas right now.”
Media Contacts:
Senator Pocock - Charlotta Lomas - 0466339862
Senator Faruqi - Lauren Skinner - 0474437111