The Housing Market Already Affected by Climate Change

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Climate change is a worrying phenomenon that keeps affecting our daily lives. Even if authorities ignore it and say that everything is under control, we notice that people are taking it more and more seriously. One of their major concerns is whether it will interfere with their intention of buying or building a house.

Figures compiled by ATTOM Data Solutions for Bloomberg News show that in recent years, those who are looking for a new place to live have been more interested in acquiring an average house situated in areas with the lowest risk of wildfires, hurricanes or flooding.

Before 2007, when climate change wasn’t such a treat, people were looking for spacious houses. Now, home situated in exposed areas have lower prices than those from safer surroundings. This means that we are starting to feel and acknowledge the threat of natural hazards. The prices of houses situated on ”unsafe” grounds have dropped even by 7.3% in the period between 2007 and 2017. Even in this case, there are no signs that things will change anytime soon.

Experts from ATTOM Data say that natural disasters risks are not the only element taken into consideration when people buy or build a house, but they can influence the future inhabitant’s decision more than other factors. Of course, everybody should consider all the advantages and disadvantages before moving into a new home, because we are talking about a long-term investment.

On the other hand, climate change is not the only criteria for lowering or raising the price for a house. Home buyers should put to balance the potential threats coming from nature and the amenity value (when you live at the edge of a forest or near water) you have to consider other risks as well.

If you are a person who doesn’t really care about nature’s threats, you could choose to buy a house in an area with beautiful landscapes. For example, in 2017, the price of houses from Key Biscayne, Florida were 19% higher than in 2007, even if the flood risk is quite high in the area.

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Brad is a former Senior Fellow at the Schuster Institute for Investigative Journalism at Brandeis University, is an award-winning travel, culture, and parenting writer. His writing has appeared in many of the Canada’s most respected and credible publications, including the Toronto Star, CBC News and on the cover of Smithsonian Magazine. A meticulous researcher who’s not afraid to be controversial, he is nationally known as a journalist who opens people’s eyes to the realities behind accepted practices in the care of children. Brad is a contributing journalist to Advocator.ca


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