Median home prices in U.S. ZIP codes in the highest 20 percent for environmental hazard risk appreciated at a faster pace than the overall market over the past decade according to ATTOM Data Solutions’ 2017 Environmental Hazards Housing Risk Index.
ATTOM analyzed 8,665 U.S. ZIP codes with sufficient housing trend data for risk related to four environmental hazards: superfund sites, brownfields, polluters and poor air quality. It found that median home prices in ZIP codes in the top environmental hazard risk quintile increased 7.4 percent from a year ago on average (compared to 7.1 percent increase nationwide); increased 57.1 percent from 2012 (compared to 51.1 percent increase nationwide); and increased 22.2 percent from 2007 (compared to 12.3 percent increase nationwide).
“With housing inventory in short supply, even homes in higher-risk ZIP codes for environmental hazards are in high demand from buyers looking for lower-priced properties and investors looking for the next up-and-coming neighborhood,” ATTOM Senior Vice President Daren Blomquist said in a release. “Buyer demand does seem to have a bit of a limit when it comes to environmental hazards, however. Homes in ZIP codes with superfunds on the EPA’s national priority list have seen weaker home price appreciation and have higher foreclosure rates than the overall housing market.”
According to ATTOM, home foreclosure rates in ZIP codes in the highest quintile for environmental hazard risk were slightly lower (0.3 percent) than homes in the overall market (0.4 percent). However, ATTOM found the home foreclosure rate in ZIP codes in the highest risk category for superfund risk averaged 0.7 percent, more than 1.5 times the overall market foreclosure rate of 0.4 percent.
ATTOM said 12.6 million U.S. single family homes and condos with a combined estimated market value of $3.4 trillion were in ZIP codes in the top quintile for environmental hazard housing risk. The average market value of those homes was $268,585 compared to an average market value of $329,217 for all 66.2 million U.S. single family homes and condos analyzed for the report.
The markets with the most combined value of homes in ZIP codes in the top quintile for environmental hazard risk were Houston ($415 billion); Riverside-San Bernardino, Calif. ($344 billion); Portland ($254 billion); Washington, D.C. ($161 billion); and Chicago ($134 billion), ATTOM found.
The top ZIP codes for overall environmental hazard housing risk in 2017 were in Denver, Southern California, Portland, St. Louis, Burlington, N.C., Tulsa and Houston.