Homes with high fire and flood risk sold for reduced through the pandemic as homebuyers searched for waterfront properties and fire-prone suburbia
SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN) Homebuyers have paid reduced for high-fire-risk and high-flood-risk homes through the pandemic, in accordance with research from Redfin (redfin.com), the technology-powered property brokerage. This comes as more folks have moved into than out of climate-risky areas recently, in part since they can often have more bang because of their buck and gain better usage of nature.
The 50 counties with the biggest percentage of homes facing high fire and flood risk saw their populations increase by typically 3% and 1.9%, respectively, from 2016 through 2020 because of positive net migration. Furthermore, purchases of second homes with high flood, storm and/or heat risk surged roughly 40% in the last two years. Whatever the upsurge in migration to climate risky areas, a Redfin survey discovered that 63% of individuals who moved through the pandemic believe climate change is or will undoubtedly be a concern in the area they now live.
From devastating floods in Kentucky and Missouri to deadly fires in California and brutal heat waves over the U.S., its clear that natural disasters are intensifying. Still, folks are getting into risky areas, said Redfin Chief Economist Daryl Fairweather. When people decide where you can live, they look at a whole host of things before climate change, which includes potential implications on the safety, home stability, and finances.
The median sale price of U.S. homes with high fire risk was $550,500 in April 2022, weighed against $431,300 for homes with low fire risk. Put simply, the typical house with high fire risk sold for $119,200 (27.6%) a lot more than the typical house with low fire riskthe largest premium in dollar terms since at the very least 2017. Places like fire-prone suburbia saw a surge in homebuyer demand during the last 2 yrs, causing prices to jump. Thats despite evidence that home prices have during the past recovered more slowly in fire-prone areas in the wake of disaster.
Similarly, the median sale price of homes with high flood risk was $402,010 in the initial quarter of 2021, weighed against $353,783 for homes with low flood risk. Which means high-risk homes sold for an archive 13.6% premiumup from the premium of 10.1% in the initial quarter of 2020.
Redfin began displaying climate risk data in 2021 in order that prospective homebuyers can better understand the climate risks for flood, fire, heat, drought and storm over a 30-year period to any area where they’re looking for a house.
To learn Redfin’s climate reporting and analysis, visit: https://www.redfin.com/news/climate-change/
Redfin (www.redfin.com) is really a technology-powered property company. We help people look for a spot to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for additional money and charge half the fee. We also run the country’s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a house can take an instantaneous cash offer from Redfin or have our renovations crew fix up their house to sell for top level dollar. Our rentals business empowers millions nationwide to get apartments and houses for rent. Since launching in 2006, we’ve saved customers a lot more than $1 billion in commissions. We serve a lot more than 100 markets over the U.S. and Canada and employ over 6,000 people.
To learn more or even to contact an area Redfin agent, visit www.redfin.com. To understand about housing marketplace trends and download data, go to the Redfin Data Center. To be put into Redfin’s news release distribution list, email firstname.lastname@example.org. To see Redfin’s press center, just click here.
Redfin Journalist Services:
Ally Braun, 206-588-6863
Released August 3, 2022