The realities and risks of climate change for housing.
Market Perspective: How Climate Change is Impacting Housing
 
Climate change is becoming a hot topic in real estate. The Mortgage Bankers Association (MBA) recently published a report on the impact of climate change on housing and housing finance, and a growing number of industry organizations are discussing the realities and risks that climate change poses for the housing market.
  
1/3 of U.S. homes are at risk of a natural disaster[1], 2020 was a record year for hurricanes[2], Wildfires are becoming larger, more frequent, and more intense[3]
Most Disaster-Prone Areas: California, Texas, Oklahoma, Kansas, Nebraska, and stretches of areas along the Mississippi River, Gulf Coast, and Atlantic
62% of Homeowners Are Concerned About Natural Disasters[5]
50% took natural disasters into account when choosing a home location[5]
Natural Disasters Homeowners Are Most Concerned About: Flood, Tornado, Blizzard
Despite the risks of climate change, America’s disaster-prone areas are becoming more populous.[6]
U.S. counties with the largest share of homes facing climate risk experienced population growth from 2016-2020 due to migration.
Counties facing the lowest risk experienced population decline.
 
“... as natural disasters become more frequent, homeowners in these areas may end up losing property value or face considerable difficulty getting their properties insured against environmental disasters.”
— Sebastian Sandoval-Olascoaga, Redfin Economist
 
 
With severe weather becoming more common, homebuyers, homeowners, and industry stakeholders should be aware of the effects of climate change on the housing market and educate themselves about potential risks.
 
 
Like this content? Forward it to a friend or colleague, or share it on social media!
  
 
Sources:
[1] CoreLogic, a data and analytics company, 2020 Climate Change Catastrophe Report.
[2] National Oceanic and Atmospheric Administration, “Record-breaking Atlantic hurricane season draws to an end,” November 24, 2020.
[3] CoreLogic, 2021 Wildfire Report.
[4] Union of Concerned Scientists, “Underwater: Rising Seas, Chronic Floods, and the Implications for US Coastal Real Estate,” June 18, 2018.
[5] Realtor.com®, “Homeowners Concerned with Natural Disasters,” September 27, 2021.
[6] Redfin, “More People Are Moving In Than Out of Areas Facing High Risk From Climate Change,” September 8, 2021.
  
 

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