4 Ways Climate Change is Influencing the Housing Market
Are climate risks part of your home search checklist? If not, you might be missing critical information that impacts your long-term investment.
The Zillow Consumer Housing Trends Report 2024 shows that a growing number of buyers are considering factors like flooding, wildfires, and extreme temperatures when choosing where to buy. In fact, nearly three-quarters (73%) of buyers said climate risks affected their home search.
Let’s dive into how climate change is influencing homebuyers in 2024 and what you should consider when looking for a home.
1. Flood Zones
Flooding has become a leading concern for homebuyers, especially with increased rainfall and more frequent storms. According to the report, 43% of buyers said they avoided homes in flood-prone areas. This makes sense given the long-term financial risk of flood damage, high insurance premiums, and potential evacuation concerns.
Before putting an offer on a home, check if it’s in a flood zone (or ask your agent about this!). The Federal Emergency Management Agency (FEMA) offers online flood maps that you can use to assess risk. Even if the property isn’t required to have flood insurance, it may still be a wise investment.
2. Wildfire-Prone Areas
Wildfires, particularly in the West, are another key factor influencing buyer behavior. The report found that 28% of homebuyers are avoiding homes in areas with high wildfire risk. With wildfires devastating communities and pushing insurance rates higher, it’s no wonder that buyers are steering clear of these regions.
If you’re considering buying in an area that has experienced wildfires, make sure the property has fire-resistant materials like flame-retardant roofing and siding. Consider investing in a defensible space around the home, such as wildfire-resistant landscaping.
3. Extreme Temperatures: A Consideration for 1 in 4 Buyers
As heatwaves and cold snaps become more common, 26% of homebuyers reported avoiding climates with extreme temperatures. Whether it’s excessive heat in the South or severe winters in the North, buyers are now prioritizing comfort and sustainability in their home search.
When evaluating homes, pay close attention to the property’s energy efficiency. Homes with modern insulation, energy-efficient windows, and climate control systems can help you withstand extreme temperatures while keeping utility costs down.
4. Hurricanes and Coastal Concerns
Homes in hurricane-prone areas are also seeing a decline in buyer interest. About 25% of homebuyers said they avoided areas where hurricanes are common. With coastal flooding, storm surges, and property damage on the rise, these risks have caused some buyers to rethink their dream of living near the beach.
If coastal living is still your goal, make sure to invest in a property with hurricane-resistant features, such as impact windows and reinforced doors. Additionally, check the availability of homeowners insurance and factor that into your total cost of homeownership.
How to Factor Climate Risk into Your Home Search
If the risk of natural disasters is on your mind as you look for a new home, you’re not alone. Here are some practical ways to consider risks and find a place you love.
