Lisa Mailhot | November 25, 2024
Buyers
A recent analysis by Redfin has revealed a powerful shift in the real estate market: low-risk homes—those with minimal exposure to heat, flood, and fire risks—are appreciating faster in value than high-risk properties. For the first time in over a decade, Americans are making climate-related considerations a priority in their homebuying decisions. This shift highlights a growing awareness of the long-term costs associated with living in disaster-prone areas.
Redfin’s report, based on data from First Street and Redfin Estimates, provides a detailed look at how climate risks influence property values:
The frequency and severity of natural disasters have reshaped how buyers evaluate their options. Redfin’s Senior Economist, Elijah de la Campa, explains,
“The reality of climate change is setting in and it’s causing a reckoning; people are putting disaster risk higher on their list of considerations when looking for a home.”
Rising insurance costs in high-risk areas further amplify this trend, making such locations less affordable and less desirable.
Certain regions, like California and parts of the southern U.S., illustrate these dynamics. Areas with significant wildfire risks in California saw population outflows, reversing prior trends. Meanwhile, Florida and Texas, both highly vulnerable to natural disasters, reported some of the slowest home value growth in the nation last year.
This market shift offers strategic opportunities for buyers and sellers alike. Sellers in low-risk areas may find their properties increasingly desirable, while buyers have added incentives to prioritize climate resilience. However, affordability remains a challenge, as low-risk properties often come with a higher price tag.
As climate concerns increasingly shape the housing market, low-risk properties are proving to be valuable assets. If you’re considering buying or selling a home, this trend underscores the importance of factoring in climate resilience. Looking to make your move to a low-risk area in Orange County? Let’s connect and find the perfect home for you.
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