How hotter weather is making us poorer

The last 11 years have been the planet's hottest on record . This changing climate is manifested in extreme weather events like heat waves and wildfires. But less obvious are the higher prices and lower wages linked to a heating world. According to a 2026 study by the MIT Sloan School of Management and UCLA School of Law, climate change has already driven up average American household expenses by $900 (€780) a year — rising to above $1,300 for one in ten US counties. These costs would not exist in a world without climate change. They include escalating home insurance ($600 higher on average), increasing state and federal taxes due to disaster recovery costs, or health impacts from wildfire smoke, for example.