As if the current economic disruption was not enough, a new report indicates homebuyers and sellers also are concerned about climate change.
The report from Redfin found 73 percent of respondents said that an increase in the frequency or intensity of natural disasters at least somewhat factors into their decision about whether and where to buy or sell a home.
A mere 10 percent of respondent said climate change doesn’t impact their decision-making process at all.
“Climate change is important to house hunters, but when it actually comes time to decide where to buy a home, it’s outweighed by other factors that feel more immediate, like affordability and access to jobs,” Redfin Chief Economist Daryl Fairweather said in a release. “Environmental changes may be factoring into their thought processes, but not yet into their actions.”
Redfin surveyed residents in 29 U.S. and Canadian destinations for its report. Residents in Houston were the most likely to be concerned about climate change. Nearly 60 percent of Houston’s respondents said that an increase in the frequency or intensity of natural disasters “very much” factors into their decision to buy or sell a home. In second place was New York City (47 percent), followed by Miami (46 percent).
“When I meet buyers, one of the first things they tell me is that they don’t want to be in a location that floods,” Redfin agent Ashley Vasquez said. “Still, I haven't seen climate change decrease home values. Houston is actually becoming a more expensive city to live in as people migrate here for job opportunities and relative affordability.”
Twenty-three percent of respondents in the Midwest said that natural disasters seriously impact their real estate decisions, compared with about 35 percent of people in both the Northeast and the South.
Nearly half of black respondents — the largest share of any group — said natural disasters “very much” factor into their real estate decisions. That compares with only 32 percent of white respondents.
“Natural disasters impact different demographics and income groups in different ways,” Fairweather said. “On the one hand, you have more affordable homes in areas that have been continuously hit by natural disasters, and then you have more expensive areas, such as beachfront properties, that also have to grapple with climate change.”