How Climate Change is Shaping Homebuying | Homebuying

Are climate risks part of your home search checklist? If not, you might be missing critical information that impacts your long-term investment.

The Zillow Consumer Housing Trends Report 2024 shows that a growing number of buyers are considering factors like flooding, wildfires, and extreme temperatures when choosing where to buy. In fact, nearly three-quarters (73%) of buyers said climate risks affected their home search.

Let’s dive into how climate change is influencing homebuyers in 2024 and what you should consider when looking for a home.

1. Flood Zones

Flooding has become a leading concern for homebuyers, especially with increased rainfall and more frequent storms. According to the report, 43% of buyers said they avoided homes in flood-prone areas. This makes sense given the long-term financial risk of flood damage, high insurance premiums, and potential evacuation concerns.

Before putting an offer on a home, check if it’s in a flood zone (or ask your agent about this!). The Federal Emergency Management Agency (FEMA) offers online flood maps that you can use to assess risk. Even if the property isn’t required to have flood insurance, it may still be a wise investment.

2. Wildfire-Prone Areas

Wildfires, particularly in the West, are another key factor influencing buyer behavior. The report found that 28% of homebuyers are avoiding homes in areas with high wildfire risk. With wildfires devastating communities and pushing insurance rates higher, it’s no wonder that buyers are steering clear of these regions.

If you’re considering buying in an area that has experienced wildfires, make sure the property has fire-resistant materials like flame-retardant roofing and siding. Consider investing in a defensible space around the home, such as wildfire-resistant landscaping.

3. Extreme Temperatures: A Consideration for 1 in 4 Buyers

As heatwaves and cold snaps become more common, 26% of homebuyers reported avoiding climates with extreme temperatures. Whether it’s excessive heat in the South or severe winters in the North, buyers are now prioritizing comfort and sustainability in their home search.

When evaluating homes, pay close attention to the property’s energy efficiency. Homes with modern insulation, energy-efficient windows, and climate control systems can help you withstand extreme temperatures while keeping utility costs down.

4. Hurricanes and Coastal Concerns

Homes in hurricane-prone areas are also seeing a decline in buyer interest. About 25% of homebuyers said they avoided areas where hurricanes are common. With coastal flooding, storm surges, and property damage on the rise, these risks have caused some buyers to rethink their dream of living near the beach.

If coastal living is still your goal, make sure to invest in a property with hurricane-resistant features, such as impact windows and reinforced doors. Additionally, check the availability of homeowners insurance and factor that into your total cost of homeownership.

How to Factor Climate Risk into Your Home Search

If the risk of natural disasters is on your mind as you look for a new home, you’re not alone. Here are some practical ways to consider risks and find a place you love.

1. Research Local Risks

Start by understanding the specific climate risks in your chosen area—whether it’s flooding, wildfires, or extreme heat. Tools like FEMA’s flood maps or resources from your local government can give you a good snapshot of potential risks. Knowing this information early can help you feel more confident about your choice.

2. Invest in Climate-Resilient Features

Homes that are equipped with features like impact-resistant windows, efficient drainage, and energy-saving designs handle climate-related challenges much better. These upgrades aren’t just “nice-to-haves”—they can make a huge difference in protecting your home, both now and in the future. Plus, these features can significantly reduce the cost of homeowners insurance.

3. Consider Insurance Costs

Climate risks like flooding or wildfire exposure can mean higher insurance premiums. It’s a good idea to check quotes early in the process so you have a full picture of the costs involved. This way, you’re financially prepared and won’t face surprises after you’ve moved in.

4. Think Long-Term

With climate risks expected to grow, it’s wise to pick a location and property that will be a safe and solid investment for years to come. Your home should be a place of comfort and security, so choosing one that stands the test of time—environmentally and financially—is key.

Remember, finding a climate-resilient home doesn’t have to be overwhelming. Take it one step at a time, focus on the factors that matter most to you, and you’ll soon be on track to a safe, comfortable place that you’ll be proud to call home.