Nearly Two-Thirds of Homebuyers and Sellers Are Hesitant to Move Somewhere With Climate Risk

Redfin Survey

(NASDAQ: RDFN) — Nearly two-thirds (62%) of U.S. residents who plan to buy or sell a home in the next year are hesitant to move to an area at risk of natural disasters, extreme temperatures and/or rising sea levels, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The share is even higher among younger generations, high-earners, Democrats and people living in the Northeast.

Nearly three-quarters (71%) of Gen Z respondents said they would be hesitant to move somewhere at risk of natural disasters, extreme temperatures and/or rising sea levels. That compares with just over half (52%) of Baby Boomers. When it comes to political preference, 69% of respondents who identified as Democrat said they would be hesitant, compared with 58% of Republican respondents. Respondents in the Northeast were most likely to express hesitance, at 68%. That compares with 59% of respondents in the South.

While the lion’s share of respondents expressed skepticism about moving to risky areas, these areas have seen more people move in than out in recent years. That’s partly because they often offer relatively affordable homes and/or access to warm weather and the outdoors. Cape Coral, North Port and Tampa—three Florida metros impacted by Hurricane Ian—consistently rank on Redfin’s list of top migration destinations, which is based on how many more Redfin.com users are looking to move in than leave.

“One of the main questions I get from buyers is, 'Where can I move that’s close to the beach but not in a flood zone?’ The answer is nowhere. If you’re not in a flood zone this year, you may be in a couple of years from now,” said Isabel Arias-Squires, a Redfin real estate agent in Fort Myers, which was among the areas hardest hit by Hurricane Ian. “This is Florida—hurricanes and flooding come with the territory. Homebuyers should always purchase flood insurance and invest in impact windows if they can.”

Arias-Squires is working with one out-of-state buyer who was under contract to purchase a second home sight-unseen in Cape Coral when Hurricane Ian made landfall in the area late last month. While the home only sustained minor damage, the buyer decided to back out—but then changed their mind because they didn’t want to lose their escrow deposit and realized they could make good money as a landlord.