Homebuyers show stronger demand for safer
homes in at-risk areas; safer homes appreciate slightly faster than
those with higher risk
SANTA
CLARA, Calif., Nov. 16,
2022 /PRNewswire/ -- More than $8.8 trillion in home value is at
moderate-to-high risk of wildfire and $6.5
trillion in home value is at moderate-to-high risk of flood
damage over the next 30 years, according to data from
Realtor.com® and First Street Foundation. As the
frequency and intensity of weather events increases, it's not
surprising that consumers are taking these issues into account when
looking for a home. New research released today by
Realtor.com® found that homebuyers generally show a
preference for lower risk homes, which in turn appreciate at a
slightly faster pace, and that the preference can be more
pronounced in some areas of higher risk where awareness may be
greater.
Homes with less climate risk appreciate faster
Homes
with a low risk of flood damage appreciate at 1.5 percentage points
faster than homes with a high risk of flood damage. During the last
flood-related disaster season (July - Sept.
2021), the growth rate gap increased to 1.7 percentage
points, suggesting that flood risk was top-of-mind for buyers.
Homes at low risk of wildfire appreciate at 3.7 percentage points
faster than homes at high risk of wildfire. During the last
wildfire season (July - Sept. 2021),
the growth rate gap held steady at 3.7 percentage points,
suggesting that awareness may be lower for wildfire than it is for
flood.
A recent Realtor.com® survey found that 71% of recent
homebuyers considered the risk of natural disasters when deciding
where to move and 47% are more concerned about natural disasters
today than they were five years ago. Additionally, a 2021
Realtor.com® survey found that 34% of homeowners would
consider moving or selling their home due to concerns about natural
disasters.
"Our data shows that users have a small but consistent
preference toward lower risk homes. Buying a home is an extremely
personal decision and many people are willing to take on more risk
in order to have a water view or find a more affordable property,"
said Danielle Hale, Chief Economist
at Realtor.com®. "Consumers are increasingly aware of
the risk that wildfires and flooding can have on their home.
However, it's important to keep in mind that while climate-related
risk is a factor that consumers might take into account, it is one
of many considerations when deciding where to live and what home to
purchase."
Homebuyers weighing climate risks when shopping
Home
shoppers on Realtor.com® who interact with the flood
feature tend to shift toward viewing homes with lower risk than
where they began. This is especially true in Florida, Louisiana and South
Carolina where consumers shift to viewing details for homes
with 5-7% lower risk scores. On the other hand, users in
Mississippi shift from viewing
homes with lower risk to homes with a higher risk of flooding,
indicating that the users are willing to take some risk to find a
property that meets their needs and may be more price
sensitive.
Wildfires seem to be less top-of-mind for home shoppers. In
California, Oregon and Utah consumers who interact with the tool
continue to look at homes with the same or similar risk scores.
However, in Arizona, Florida and Mississippi, users of the tool tend to shift
toward properties with higher risk, suggesting that awareness of
wildfire risk might be lower than for flood or that consumers might
be more price sensitive.
"We felt that it was important to add natural disaster
information to Realtor.com® to help home shoppers and
homeowners better understand their risks and take preventative
steps to help mitigate that risk," said Sara Brinton, lead product manager at
Realtor.com®. "In the two years since we added flood
risk data to the site, it has become one of our most popular
features and we're proud to be able to provide this important
information to consumers so that they can make informed decisions
during the home shopping process."
About Realtor.com®
Realtor.com®
is an open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real estate
more than 25 years ago. Today, through its website and mobile apps,
Realtor.com® is a trusted guide for consumers, empowering more
people to find their way home by breaking down barriers, helping
them make the right connections, and creating confidence through
expert insights and guidance. For professionals,
Realtor.com® is a trusted partner for business growth,
offering consumer connections and branding solutions that help them
succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. For more information, visit
Realtor.com®.
Media Contact
press@realtor.com
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SOURCE Realtor.com