In 2020 and 2021, purchases of second homes with high flood risk rose 45 percent from 2018-2019, according to Redfin’s analysis of ClimateCheck data. There also were increases in purchases of second homes with high storm risk (40 percent) and high heat risk (39 percent).
Demand for second homes surged during the pandemic, thanks to low mortgage rates, remote work and the desire to escape cities. Overall, purchases of second homes were 37 percent higher in 2020 and 2021 compared with 2018 and 2019. Demand has since fallen back below pre-pandemic levels, but many Americans now own at-risk second homes, which has implications for the future.
“The threat of climate change isn’t the top concern for a lot of homebuyers, which means they often prioritize factors like warm weather and proximity to the beach over avoiding natural-disaster risk. Second-home owners, in particular, have another place to live if disaster strikes — another reason climate danger may not feel like a pressing issue,” Redfin Senior Economist Sheharyar Bokhari said in a release. “But house hunters should be aware that purchasing in a disaster-prone area not only puts them and their home at risk, but their finances as well. Home values in climate-endangered places may fall in the coming years as consumers learn more about the risks to properties in these areas.”
A recent Redfin analysis found that more people have been moving into than out of counties with the largest share of homes at high risk from natural disasters.
“House hunters from out of town ask about climate change because they’re very concerned about flooding, but most of them don’t change their minds,” Miami Redfin agent Cristina Llanos said. “They hear horror stories of hurricanes, but generally still move forward. People want to talk about it but it typically doesn’t make or break their decision.”
Heat is the most common risk facing second-home buyers—nearly all (94 percent) of second homes purchased in the past two years face high heat risk. Next comes high storm risk, (78 percent), followed by high flood risk (26 percent), high fire risk (23 percent) and high drought risk (21 percent).
Many popular second-home destinations, like Florida and Arizona, face significant heat and/or storm risk. The most popular destinations for homebuyers looking to relocate are Miami, Tampa and Phoenix.