Buyers Flock to Climate Danger Zones Driven by Affordability
Nearly a quarter of U.S. homes face severe climate risks, yet buyers continue to invest in these areas, primarily due to lower prices, according to a new Realtor.com report.
Despite intensifying climate change impacts reshaping homeownership, a significant portion of U.S. homebuyers are still choosing properties in high-risk zones. A recent report from Realtor.com reveals that 23.1 percent of all U.S. homes carry severe risk from wind, flooding, or wildfires.
The primary driver for this trend remains affordability. Realtor.com analysis indicates that homes in severe climate-risk areas are priced 22 percent lower per square foot compared to lower-risk homes. These properties also attract 48 percent more views per listing, suggesting strong buyer interest despite the known hazards.
"Price is still the biggest motivator for a lot of home shoppers, even in places where climate risk is well known," said Jiayi Xu, Economist at Realtor.com. She added that buyers are weighing the immediate financial certainty of mortgage payments against the hypothetical nature of future climate disasters.
Industry observers note that while upfront costs are lower in high-risk areas, buyers may face increased long-term expenses including higher insurance premiums and property taxes due to extreme weather events. Many are drawn to regions like the Sun Belt, where greater housing supply and lower prices offset perceived climate risks, prioritizing current financial feasibility.