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Water Scarcity and the Housing Market

By Tobias Roberts, Rise Writer
Last Updated: Feb 11, 2025

One 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

  1. What Is Water Scarcity? 
  2. What Are the Main Causes of Water Scarcity? 
  3. What States Are Impacted by Water Scarcity? 
  4. What Cities Are Affected by Water Scarcity?  
  5. How Can We Prevent Water Scarcity? 
Theewaterskloof Dam, Capetown, South Africa
Theewaterskloof Dam, Capetown, South Africa

What Is Water Scarcity? 

From mid-2017 to mid-2018, extended droughts in southern Africa led to the Cape Town water crisis. With a population of over half a million people and a much larger metropolitan area, the city of Cape Town relies almost exclusively on water from nearby dams. During the extended drought that was caused in part by climate change, the water levels in reservoirs reduced to about 15 percent of total capacity. Fears that the city might have to "shut off" its water supplies and force residents to queue for daily water rations led to massive restrictions on water usage. These water use restrictions enabled the city to cut its total water usage in half. This halving of water use helped them to avoid "Day Zero" when municipal water systems would become dysfunctional.

Though the Cape Town water crisis thankfully never reached the "Day Zero," it offers a useful example of how changing weather patterns, increased urbanization, and other demographic changes are leading to severe water scarcity issues around the world.

Water scarcity is defined as the lack of sufficient freshwater resources that are available to meet the demands of water use within a given city or region. Around the world, over 2.8 billion people are affected by water scarcity crisis for at least one month each year. Similarly, over 1.2 billion people have limited or no access to clean drinking water, which is essential for healthy lives.

On a technical level, water scarcity can be divided into different levels of urgency, known progressively as:

  • Water stress
  • Water shortages
  • Water deficits, and
  • Water crises. 

For example, if your local, municipal water company sends out flyers asking homeowners to stop watering their lawns or wash their cars, it is probably due to local water stress. If local or state governments impose mandatory water rationing, this is most likely because of more severe water crises.

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Rain Barrels Pheasant Hill Homes
Rain Barrels. Photo Credit: Pheasant Hill Homes

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.

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Article By

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.

Tobias Roberts