{"id":4851,"date":"2024-03-14T02:53:54","date_gmt":"2024-03-14T02:53:54","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/03\/14\/climate-risks-threaten-nearly-half-of-all-homes-in-the-u-s-what-buyers-and-sellers-need-to-know\/"},"modified":"2024-03-14T02:53:54","modified_gmt":"2024-03-14T02:53:54","slug":"climate-risks-threaten-nearly-half-of-all-homes-in-the-u-s-what-buyers-and-sellers-need-to-know","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/03\/14\/climate-risks-threaten-nearly-half-of-all-homes-in-the-u-s-what-buyers-and-sellers-need-to-know\/","title":{"rendered":"Climate Risks Threaten Nearly Half of All Homes in the U.S.: What Buyers and Sellers Need To Know"},"content":{"rendered":"

<\/a><\/p>\n

Realtor.com \/ Getty Images<\/p>\n

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Jon Randall<\/strong> was frightened. In 2020, a fast-moving wildfire was heading toward the home he shared with his wife in the suburbs of San Francisco. The temperature was soaring, the air quality outdoors was hazardous, and he\u2019d seen the photos of the homes that flames had already consumed.<\/p>\n

His home was spared, but Randall had enough. In late 2020, after more than two decades in California, he and his wife became \u201cclimate refugees.\u201d They moved across the country to Webster, NY<\/a>, a small town upstate near the Canadian border. As a bonus, they were only a few hours away from their surviving parents.<\/p>\n

\u201cI just thought this was way out of control,\u201d says Randall, 71 and a retired software developer. \u201cThere was one time when the winds were blowing south and [the fire] was about 20 miles from us. \u2026 I was like, \u2018What the heck are we going to do?\u2019 Because it moves so fast and the winds are blowing and it\u2019s over 100 degrees.\u201d<\/p>\n

Nearly half of all homes in the U.S., 44.8%, are at risk of severe or extreme damage from environmental threats, according to a new report from the Realtor.com\u00ae economics team<\/a>. Almost $22 trillion in residential\u00a0<\/strong>real estate is in danger of flooding, wind damage, wildfires, heat, or hazardous air quality.<\/p>\n

Earlier this month, firefighters in Texas were battling the largest wildfire in the state\u2019s history. At least two people died in the Smokehouse Creek Fire, more than 500 structures had been destroyed, and over 1 million acres had been scorched as of March 2, according to CNN<\/a>.<\/p>\n

\u201cClimate risk is a big deal,\u201d says Realtor.com economist Jiayi Xu<\/strong>. \u201cIt can impact home values, insurance costs, and the overall stability of a housing market.\u201d<\/p>\n

These natural disasters can destroy homes and communities. Even properties that aren\u2019t directly affected by climate risks are being affected by higher insurance premiums\u2014threatening potential sales and making homeownership increasingly more expensive.<\/p>\n

\u201cThe issues are whether you can get access to affordable insurance and how much the costs will increase,\u201d says Xu.<\/p>\n

Randall says he still misses his friends and California\u2019s natural beauty, but he feels safer now in his new home.<\/p>\n

\u201cI wouldn\u2019t go back,\u201d he adds.<\/p>\n

To figure out the metropolitan areas facing the highest risks and the value of their real estate, the Realtor.com economics team overlaid heat, wildfire, flood, wind, and air quality data from First Street Foundation over Realtor.com single-family home, condo, co-op, townhome, and row home property data. Then the team matched the homes to property value estimates. Only homes in the 100 largest metros were ranked.<\/p>\n

Homes deemed to be at severe and extreme risk for any of the environmental threats are those that received a score of 7 or higher from First Street. (Honolulu was not included in the analysis due to a lack of climate data.)<\/p>\n

Western markets are more vulnerable to wildfires<\/h2>\n

More insurers are pulling out of fire-prone states like California, where about 39% of these vulnerable properties are located.<\/p>\n

David Swanson\/Bloomberg<\/p>\n

The Western swath of the country was most vulnerable to the deadly blazes, which have devastated entire communities<\/a>.<\/p>\n

Nationwide, 5.5% of homes, worth $3 trillion, face a severe or extreme risk from wildfires. Also, these homes have a more than 14% chance of being involved in a wildfire over the next 30 years.<\/p>\n

Such startling statistics have resulted in more insurers pulling out of fire-prone states like California, where about 39% of these vulnerable properties are located. This has left homeowners scrambling to find other affordable options, especially those with mortgages who are required to carry these policies. The insurer of last resort, California\u2019s FAIR Plan, is often more expensive than standard homeowners or fire insurance.<\/p>\n

Surprisingly, home prices are growing more in the areas most at risk from the fires. These areas tend to be on the pricey West Coast.<\/p>\n\n

Colorado Springs, CO, where about three-quarters, 74.4%, of homes in the metro were at severe or extreme risk of wildfires over the next 30 years, was deemed the most vulnerable. That adds up to about $89.9 billion in real estate lying in harm\u2019s way.<\/p>\n

In 2012, the Waldo Canyon Fire<\/a> killed two people and destroyed about 350 homes on the west side of the city. A year later, the Black Forest Fire tore through northern Colorado Springs. Two people died, and about 500 homes were destroyed.<\/p>\n

But today, wildfires aren\u2019t a big concern for homebuyers looking in other parts of the metro, says local real estate agent Dominic Pucci<\/strong>.<\/p>\n

\u201cIt\u2019s not really on our radar,\u201d says Pucci, who\u2019s with Blockhouse Real Estate. \u201cThe more north you go into the forested areas, that would be more of a concern.\u201d<\/p>\n

The metro was followed by Riverside, CA, with 61.3% of homes at risk; Tucson, AZ, at 59.8%; Oxnard, CA, at 41.6%; and Denver, at 30.3%.<\/p>\n

Flood damage threatens trillions of dollars in real estate<\/h2>\n

Buyers who purchase homes where flooding is a problem face high annual insurance premiums.<\/p>\n

Getty Images<\/p>\n

Roughly 6.6% of homes, worth an estimated $3.4 trillion, are confronted with a high risk of flooding.<\/p>\n

Flooding can claim lives, damage and destroy homes, and cause harmful mold<\/a>. And even the threat of it can be costly.<\/p>\n

Research shows that prices for homes where the threat of flooding looms large lag homes in safer areas. Buyers who purchase homes where flooding is a problem also face high annual insurance premiums. Those insured by the National Flood Insurance Program could see their annual premiums double by the end of the decade, according to data from the program.<\/p>\n\n

New Orleans, which was devastated by Hurricane Katrina in 2025, had the largest percentage of vulnerable homes. About 76.1% of homes worth an estimated $78.3 billion are in severe or extreme danger of flooding, according to the Realtor.com analysis. It was followed by Cape Coral, FL, with 39.9% of homes at risk; North Port, FL, at 20.2%; Honolulu, at 19.5%; and Tampa, FL, at 19.5%.<\/p>\n

\u201cBuyers are willfully ignorant,\u201d says Jesse Keenan<\/strong>, a sustainable real estate professor at Tulane University in New Orleans. \u201cYou have to push it out of your mind in New Orleans that during hurricane season \u2026 you could very easily be wiped off the map.\u201d<\/p>\n

Hurricane wind damages threaten storm-prone areas<\/h2>\n

The homes with the highest flood risk from storms are also likely to be threatened by wind damage<\/a>. Almost a fifth of homes, 18%, are at risk of severe or extreme damage from hurricane winds of at least 51 mph over the next 30 years. That amounts to nearly $7.7 trillion worth of real estate.<\/p>\n

Many homeowners in 19 states and Washington, DC, are required to carry additional hurricane-related policies. This makes homeownership even more expensive for buyers, especially those who finance their homes with traditional mortgages where extra insurance is often required.<\/p>\n

This is because when a storm strikes, water that gets into a home through a damaged roof or is propelled by wind is typically not covered by flood insurance.<\/p>\n

Wind damage is particularly high in many large metropolitan areas in the South, especially coastal cities in Florida.<\/p>\n

Every home is at a severe or extreme risk of wind damage in Houston; Miami; Tampa, FL; Orlando, FL; Jacksonville, FL; New Orleans; North Port, FL; Cape Coral, FL; Baton Rouge, LA; Charleston, SC; Deltona, FL; Palm Bay, FL; Lakeland, FL; Myrtle Beach, SC; and McAllen, TX.<\/p>\n

\u201cBuyers are having a hard time finding insurance and then finding insurance they can afford,\u201d says Keenan. \u201cFor everybody else, they just go uninsured.\u201d<\/p>\n

Rising temperatures are another threat<\/h2>\n

Rising temperatures have become more than just uncomfortable in many parts of the country. They can also be expensive and deadly.<\/p>\n

About a third of U.S. homes, 32.5%, worth an estimated $13.6 trillion, are at risk of severe or extreme heat exposure with average temperatures in the hottest month of the year topping 95 degrees Fahrenheit over the next 30 years. Those living in the South, particularly in states such as Florida, South Carolina, Texas, and Louisiana, are the most vulnerable.<\/p>\n

Heat is forcing renters and homeowners to pay higher cooling costs. Long-term exposure to high temperatures can result in pricier maintenance to roofs, patios, and retaining walls.<\/p>\n

Heat is an especially large problem in the South. Every home had a high risk of heat in Houston; Miami; Tampa, FL; Orlando, FL; Jacksonville, FL; New Orleans; North Port, FL; Cape Coral, FL; Charleston, SC; Deltona, FL; Palm Bay, FL; Lakeland, FL; McAllen, TX; Virginia Beach, VA; Myrtle Beach, SC; Austin, TX; and Baton Rouge, LA.<\/p>\n

\u201cIt can be hell here sometimes,\u201d says Houston-are real estate agent Greg Nino<\/strong>, of Re\/Max Compass. \u201cIt gets so hot. People either leave because they can\u2019t stand it here or they learn to adapt and adjust somehow.\u201d<\/p>\n

Buyers may be willing to trade air quality for cheaper housing costs<\/h2>\n

Wildfires, drought, and extreme heat are making air quality worse.<\/p>\n

Getty Images<\/p>\n

While air quality isn\u2019t a direct threat to a home, like a wildfire or flooding, it can cause health problems and force folks to stay indoors. About 9% of homes, worth about $6.6 billion, face severe or extreme risks. And wildfires, drought, and extreme heat are making air quality worse.<\/p>\n

California, which grapples with wildfires, has the highest percentage of these homes.<\/p>\n

But poor air quality appears to be the price many homebuyers and renters are willing to pay if it means they\u2019re saving money on their housing costs, says Xu, of Realtor.com.<\/p>\n

\u201cIn areas with high climate risk and lower home prices, people are tolerating these risks in exchange for more affordable housing,\u201d Xu says.<\/p>\n

Each home in four Western metros\u2014Fresno, CA; Spokane, WA; Sacramento, CA; and Stockton, CA\u2014is facing severe or extreme risks due to poor air quality. Roughly 99.8% of homes in Silicon Valley\u2019s San Jose, CA, and Portland, OR, are also at risk.<\/p>\n\n

In Spokane, \u201cit\u2019s only during fire season. It\u2019s a relatively new situation,\u201d says Marianne Bornhoft<\/strong>, a real estate broker at Windermere Manito.<\/p>\n

It hasn\u2019t affected homebuyers coming into the area, she says, because the air quality gets really bad only when fires are burning nearby or in California or Canada, with the wind bringing the air to Spokane.<\/p>\n

\u201cWe call it smoke season,\u201d Bornhoft says of the weeks with poor air quality, when many folks stay inside. \u201cYou just make adjustments.\u201d<\/p>\n

The post Climate Risks Threaten Nearly Half of All Homes in the U.S.: What Buyers and Sellers Need To Know<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Realtor.com \/ Getty Images Jon Randall was frightened. In 2020, a fast-moving wildfire was heading toward the home he shared with his wife in the suburbs of San Francisco. The temperature was soaring, the air quality outdoors was hazardous, and he\u2019d seen the photos of the homes that flames had already consumed. His home was…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":4852,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/4851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=4851"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/4851\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/4852"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=4851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=4851"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=4851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}