Climate Migration Might Change the Real Estate Market

Climate change is causing extreme weather, and extreme weather is convincing people to move. Houses on the coastline or in areas below sea level are usually built to sustain flooding. Houses in suburban New Jersey are not built that way. People living in the Northwest are used to moderate temperatures and rainy weather, not the extreme heat usually seen in the Southwest. Residents of suburban California moved away from the big cites to avoid the exact air pollution that has been permeating from the wildfires. Climate change is causing shifts in the housing market that will continue for years to come.

Redfin conducted a survey of two thousand residents from February 25 to March 1, 2021 and found that “about half of respondents who plan to move in the next year said extreme temperatures and/or the increasing frequency or intensity of natural disasters played a role in their decision to relocate. More than a third (36%) said rising sea levels were a factor.” It is clear that Americans are seeing the news and losing interest in areas that used to be highly desirable. Florida is a great retirement/vacation destination, but the prospects of rising sea levels may be discouraging people from living there. California used to entice new residents with its lush landscapes, but the continuous wildfires are literally smoking people out.

Most people don’t want to spend money on extreme-weatherproofing for their homes as it doesn’t come cheap. Redfin’s survey found that “35% of homeowners have already spent $5,000 or more protecting their homes against climate risk. 79% of Americans said they would be hesitant to buy a home in areas with increasing frequency or intensity of natural disasters, 75% said they’d be hesitant to buy in an area with extreme temperatures and 76% said they would be hesitant to purchase in regions with rising sea levels.”

Kim Romano left her house in the summer of 2020 to be closer to her son in Seattle during the pandemic. Only a year earlier she requested an estimate on her Key West, Florida home to be protected from rising sea levels. It was projected to set her back $250,000. Ultimately, she decided to sell her home and permanently move to Seattle. 

For the time being, climate migration seems to only affect the wealthier Americans. With housing supply so low, a huge majority of people can’t afford to be picky if they want to buy at all. But as the pandemic market begins to cool and people have more options when house shopping, certain markets that are natural-disaster or extreme-weather prone may start to see a steady drop in demand, while safer areas of the country could see a continued housing boom.