Pollution, Mortgages, and Rent
The Relationship Between Air Pollution and Mortgage Delinquency
Air pollution has become an increasingly concerning contributor to negative economic outcomes like mortgage delinquency and foreclosures. Several studies have found associations between air pollution exposure and mortgage delinquency or foreclosures. One study published in 2019 looked at mortgage delinquency rates in different ZIP codes and found that areas with higher levels of fine particulate matter (PM2.5) air pollution had higher rates of mortgage delinquency, even when controlling for income levels. This connection warrants a deeper analysis into both the direct health impacts of pollution and the consequential ripple effects on finances, housing, and equity.
The most immediate impact of polluted air is on human health. Breathtaking elevated levels of particulates, chemicals, and other toxins can cause chronic respiratory issues, cancer, cardiovascular disease, and other severe medical conditions. Treating these pollution-induced illnesses often incurs high costs for medications, hospital visits, and more. Especially for lower-income families already stretched thin, these additional healthcare expenses can force painful trade-offs with mortgage and rent payments. Lost days of work due to pollution-related sickness also reduces income available to cover housing costs.
Low-income and minority communities are often located in more polluted areas and also tend to have higher rates of mortgage delinquency and foreclosure. This puts homeowners at greater risk of owing more on their mortgage than their house is worth, which makes default or foreclosure more likely. Compounding this, people who call these places home also face enormous social and economic stressors. Additionally, these stressors can accumulate over multiple generations, just look at many families who have spent the last 50–100 years living in Redlined communities. Ultimately, these injustices amplify health disparities and the racial wealth gap.
The connection between pollution and missed mortgage payments appears to strengthen during economic downturns and periods of high unemployment. Job losses create financial instability and compound the economic burden resulting from pollution-related health issues. Though studied less, research also indicates a possible link between high pollution levels and greater rent burdens as a percentage of income.
While more research is required to firmly establish causality, the health impacts of air pollution alone necessitate action. Numerous studies confirm the debilitating effects of particulate matter, chemicals, and toxins on cardiovascular and respiratory health. By driving up healthcare costs and reducing earnings, pollution undeniably makes it harder for many individuals and families to afford stable housing. Comprehensive solutions are needed to improve air quality, safeguard public health, and strengthen economic resilience.
Keep Tabs on Air Pollution with AirNow
How can you stay informed about air quality in your area? The Environmental Protection Agency’s AirNow website provides real-time air quality data that empowers you to protect your health.
AirNow tracks levels of widespread pollutants like ozone and particle pollution (PM2.5). It compiles monitoring data from over 400 locations across the U.S. into a user-friendly format.
Simply enter your zip code or city on AirNow.gov to check current pollution levels.
The EPA established the Air Quality Index (AQI) to standardize air quality information for the public. The index assigns a value from 0 to 500 based on five major pollutants. The higher the AQI value, the greater the health risk from pollution exposure. Understanding these categories can guide your actions. For example, when levels are coded orange, limit prolonged outdoor exertion if you have heart or lung disease. And keep kids indoors on red days.