Climate change has had a significant impact on the U.S. real estate market, as buyers now consider climate risks before making a purchase, in addition to seeking better quality of life and affordability.
Turn up the volume on your real estate success at Inman On Tour: Nashville! Connect with industry leaders and top speakers to gain insights, strategies, and connections. Elevate your business and achieve your goals with the magic of Music City. Register now.
Climate change has led to a shift in the real estate market, with rising insurance costs and property devaluation in once-safe areas due to extreme weather events, according to a study by First Street. This shift could result in nearly $1.5 trillion in real estate value loss over the next 30 years, as over 55 million Americans are expected to relocate to less climate-vulnerable areas by 2055.
Coastal regions are facing rising sea levels, while inland areas are dealing with heat waves, droughts, and floods. Major disasters in 2024 cost over $182 billion, with Texas, Florida, and North Carolina experiencing significant damage. Despite these risks, many Americans are still moving to disaster-prone areas, driven by affordability and job opportunities.
As insurance premiums rise and maintenance costs increase, owning a home in high-risk areas is becoming more expensive. Some insurers are pulling out of high-risk states, leaving homeowners with limited options. Climate-resilient regions are expected to hold steady in terms of housing values.
Americans are increasingly considering climate risks when choosing where to live, with access to climate risk data becoming a crucial part of the homebuying process, according to experts.
As the understanding of climate change continues to increase, it will have a greater impact on the decisions Americans make regarding where and how they choose to establish their homes and communities.
Please contact Richelle Hammiel for further information.