Water Scarcity and the Housing Market
Last Updated: Feb 11, 2025One of the things that differentiate our planet from virtually every other known world in our solar system and beyond is the abundance of water. We are known as the blue planet precisely because water makes up over two-thirds of Earth's surface. However, of the 1,386 billion km³ (333 million cubic miles) of water on our Earth, only 2.5 percent of that water is freshwater. And, of that fresh water, only 0.3 percent is in liquid form on the surface of the Earth.
Water is an essential element of life and civilization. Among the many challenges that our growing world population faces, water scarcity will affect many aspects of our lives. For the building industry, the shortage of freshwater resources drastically affects how and where homes are built.
Below, we briefly explain the scope of the coming water scarcity crisis, and we look at how it could potentially affect the housing market and building industry. Then, we explain steps homeowners can take to increase their resiliency in the face of future water shortages.
Table of Contents
- What Is Water Scarcity?
- What Are the Main Causes of Water Scarcity?
- What States Are Impacted by Water Scarcity?
- What Cities Are Affected by Water Scarcity?
- How Can We Prevent Water Scarcity?
What Cities Are Affected by Water Scarcity?
As cities continue to grow in size, supplying millions of people in concentrated areas with potable water presents an authentic challenge for city planners and politicians. Unfortunately, poor planning and aging infrastructure (think Flint, Michigan) mean that many cities across the United States are at risk of running out of water. The four cities most affected by water scarcity include:
- El Paso, Texas: This growing city only gets 9 inches of rainfall each year. Its primary water source, the Rio Grande, is shared with Mexico and has recently experienced historic lows.
- Phoenix, Arizona: This city is literally in the middle of a desert. Both the Colorado and the Salt Rivers suffer from water stress, and the town has limited other options should either of these rivers run dry.
- Los Angeles, California: Los Angeles imports almost 90 percent of its water from a distance of more than 200 miles. The distance itself is a risk factor, and the dwindling supplies from the Colorado River and others present a real challenge to this city.
- Miami, Florida: Miami is located in a tropical region that receives regular rainfall. However, rising sea levels due to climate change are causing the salty ocean water to creep into the city's aquifers, thus compromising water quality.
How Can We Prevent Water Scarcity?
Water shortages and water scarcity will continue to affect homeowners and the building and real estate industries. Dry and arid regions may see a decrease in home building, thus shifting the overall housing market. On the plus side, water scarcity is forcing homeowners, builders, and government authorities to come together to reduce water demand in residential and commercial buildings. Rainwater harvesting systems are growing at exponential rates in several areas around the country.
Individual municipalities and city governments around the country are implementing offset programs for water usage. There has been a lot of focus on carbon offsetting programs for energy use in home construction. However, programs could require builders to build towards net-zero demand for aggregate water resources. This would be an excellent strategy for reducing water demand and limiting the effects of water scarcity.
On an individual level, homeowners can increase their level of autonomy and resiliency through investing in rainwater harvesting systems and cisterns. Even if you live in an arid area, the amount of water you can harvest from your rooftop might be enough to supply your home with your annual water needs. You can use this online tool to calculate how much rainwater you might be able to harvest based on the size of your roof and your annual rainfall.
Homeowners can invest in water-saving faucets, showerheads, toilets, and appliances. Each person in the United States uses an average of 80 to 100 gallons of water each and every day. Cutting back on our usage of water is essential to avoid water scarcity.
Tobias Roberts
Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.
