Blog 1: Climate Change is affecting Real Estate
Climate change is all around us – it can no longer be ignored. Whether through coastal erosion, unforeseen flooding, rampant wildfires, extreme weather events, or simply increasing temperatures, climate change is actively disrupting real estate markets nationwide. According to a 2020 survey by Redfin, nearly 75% of people worry about climate change when buying or selling a home. Many of these concerns come from prospective homebuyers searching for homes along the coast, within low lying flood plains, and regions subject to wildfires and extreme heat. Unfortunately, some of the most desirable locations in the U.S. are those subject to the ever-increasing negative impacts caused by climate change. Sunny day flooding in Florida during high tides is becoming more common due to sea level rise. Rapid urbanization and more powerful storms is causing massive floods and damages in areas along the Gulf of Mexico. The extent and severity of wildfires is increasing, not only along the U.S. west coast, but in the Southeastern U.S. as well.
What steps should prospective homebuyers or individuals trying to protect their current real estate investment take to ensure their climate risk remains low?
- Understand the ever-increasing risks associated with a prospective region.
- Identify if being in a specific location within a region mitigates those risks.
- Plan for the worst and hope for the best (think insurance)!
- Know what your state is doing to protect their infrastructure.
- Despite how perfect a property may seem, simply do not invest long term in high-risk locations.
RealChange LLC was developed to help all homebuyers and investors improve their understanding of climate-related risks. RealChange Reports allow clients to rest easy knowing their investment is climate-change ready. Know your risk!