How Climate Change is Reshaping the Housing Market in 2024

In 2024, climate change isn’t just an abstract concept; it’s influencing where people choose to call home. A staggering 73% of homebuyers are factoring in climate risks like flooding, wildfires, and extreme temperatures when deciding where to buy. According to the Zillow Consumer Housing Trends Report, the majority of prospective buyers are more climate-conscious than ever before, seeking homes that stand up to the forces of nature. Let's explore the climate risks impacting homebuying decisions and what you should know to make a future-proof investment.

Flood Zones: A Priority for Cautious Buyers

Flooding tops the list of climate concerns for today's homebuyers, with 43% actively avoiding homes in flood-prone areas. With the increased likelihood of intense storms and heavy rainfall, the long-term financial impact of flood damage is a serious factor for prospective homeowners. FEMA’s online flood maps make it easy to assess whether a property lies in a flood zone. And even if flood insurance isn’t required, it might be a smart safeguard.

Wildfire-Prone Regions: Safety in Flames

In fire-prone areas, especially across the West, buyers are thinking twice. About 28% of homebuyers now avoid homes in regions with a high wildfire risk. Rising insurance costs and the devastation left by wildfires make these areas less appealing. For those considering homes in wildfire-prone areas, look for properties with fire-resistant materials—like flame-retardant roofing—and consider landscaping with wildfire-resistant plants for an extra layer of protection.

Extreme Temperatures Are a Dealbreaker for Many

With heatwaves and cold snaps on the rise, extreme temperatures are becoming a real concern. Twenty-six percent of homebuyers are choosing to avoid areas with harsh climates altogether. Energy efficiency is a top priority for these buyers, who want homes that provide comfort and sustainability. Features like modern insulation, energy-efficient windows, and advanced climate control systems make it easier to stay comfortable no matter the weather.

Hurricanes and Coastal Risks: A Shifting Dream

Living by the beach might sound dreamy, but 25% of buyers are steering clear of hurricane-prone areas. With rising coastal flooding and storm damage risks, buyers are prioritizing safety over the ocean view. For those still keen on coastal living, investing in hurricane-resistant features like impact windows, reinforced doors, and reliable homeowners insurance is essential to balancing dream with reality.

Practical Tips for Climate-Conscious Buyers

If natural disasters are on your radar as you look for a new home, you’re not alone. Here’s how to balance your dream of a safe, comfortable home with the growing realities of climate risk:

Research Local Climate Risks

Understand the specific risks in your chosen area, whether it’s flooding, fires, or extreme heat. Tools like FEMA’s flood maps and local government resources are a great starting point to make informed decisions.

Invest in Climate-Resilient Features

Homes with climate-resistant upgrades—like energy-efficient windows, efficient drainage, and impact-resistant structures—handle environmental challenges far better. These aren’t just nice perks; they can make a big difference in protecting your investment while potentially lowering insurance costs.

Factor in Insurance Costs Early

Climate risks like flooding or wildfire exposure often mean higher insurance premiums. Getting quotes early in the home search process will give you a clearer picture of total ownership costs, ensuring no unpleasant surprises.

Choose a Location with Long-Term Appeal

With climate risks set to increase, it’s wise to pick a location that’s likely to remain secure and stable. After all, your home should be a place of peace and security—a solid investment for you and your family.

Climate-resilient home shopping doesn’t have to be overwhelming. By prioritizing the risks that matter most to you, you’ll find a safe, comfortable space you’ll be proud to call home for years to come.