Press release
New Realtor.com® Data Highlights the Impact of Wildfire and Flood Risk on Consumer Behavior and Home Prices
Homebuyers show stronger demand for safer homes in at-risk areas; safer homes appreciate slightly faster than those with higher risk SANTA CLARA, Calif., Nov.
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[{"type":"text","content":"Homebuyers show stronger demand for safer homes in at-risk areas; safer homes appreciate slightly faster than those with higher risk\nSANTA CLARA, Calif., Nov. 16, 2022 /PRNewswire/ -- More than $8.8 trillion in home value is at moderate-to-high risk of wildfire and $6.5 trillion in home value is at moderate-to-high risk of flood damage over the next 30 years, according to data from Realtor.com® and First Street Foundation. As the frequency and intensity of weather events increases, it's not surprising that consumers are taking these issues into account when looking for a home. New research released today by Realtor.com® found that homebuyers generally show a preference for lower risk homes, which in turn appreciate at a slightly faster pace, and that the preference can be more pronounced in some areas of higher risk where awareness may be greater.\nHomes with less climate risk appreciate fasterHomes with a low risk of flood damage appreciate at 1.5 percentage points faster than homes with a high risk of flood damage. During the last flood-related disaster season (July - Sept. 2021), the growth rate gap increased to 1.7 percentage points, suggesting that flood risk was top-of-mind for buyers. Homes at low risk of wildfire appreciate at 3.7 percentage points faster than homes at high risk of wildfire. During the last wildfire season (July - Sept. 2021), the growth rate gap held steady at 3.7 percentage points, suggesting that awareness may be lower for wildfire than it is for flood.\nA recent Realtor.com® survey found that 71% of recent homebuyers considered the risk of natural disasters when deciding where to move and 47% are more concerned about natural disasters today than they were five years ago. Additionally, a 2021 Realtor.com® survey found that 34% of homeowners would consider moving or selling their home due to concerns about natural disasters.\n\"Our data shows that users have a small but consistent preference toward lower risk homes. Buying a home is an extremely personal decision and many people are willing to take on more risk in order to have a water view or find a more affordable property,\" said Danielle Hale, Chief Economist at Realtor.com®. \"Consumers are increasingly aware of the risk that wildfires and flooding can have on their home. However, it's important to keep in mind that while climate-related risk is ...