Floods, fires and extreme weather are
reshaping how people view climate risk and real estate
- A clear majority of people in each region of the United States consider at least one
climate risk when shopping for a home.
- A majority of today's buyers are millennial and Gen Z shoppers,
and they are more likely than other generations to consider a
climate risk when deciding where to buy a home.
SEATTLE, Sept. 5,
2023 /PRNewswire/ -- More than 4 out of 5
prospective home buyers consider climate risks as they shop, new
Zillow research shows. Most say their major concern is flood risk,
followed by wildfires, extreme temperatures, hurricanes and
drought.
"Climate risks impact where most prospective buyers shop for a
home," said Zillow senior population scientist Manny Garcia. "While all generations juggle
trade-offs like budget, floor plans and commute times, younger home
shoppers are more likely to face another consideration: They want
to know if their home will be safe from rising waters, extreme
temperatures and wildfires."
A clear majority of prospective buyers in each region of
the United States consider at
least one climate risk when shopping for a home. People in the West
are most likely to report climate risk as very or extremely
impactful in their home search, followed by those in the Northeast.
On the flip side, one-third of Midwestern and Southern shoppers say
climate risks are not very impactful or not at all impactful to
their real estate journey.
|
Total
|
Midwest
|
Northeast
|
South
|
West
|
Share of prospective
buyers who
considered at least one climate risk
|
83 %
|
77 %
|
85 %
|
79 %
|
90 %
|
Share of buyers who
said climate
risks are:
|
|
|
|
|
|
Very/extremely
impactful
|
49 %
|
42 %
|
50 %
|
43 %
|
59 %
|
Not at all/not very
impactful
|
28 %
|
34 %
|
27 %
|
33 %
|
20 %
|
Climate risks are a major concern for younger home shoppers, who
are driving the market. The median age of today's home buyer is 39,
and first-time buyers make up 50% of all buyers. Millennial and Gen
Z shoppers — who comprise 54% of all home buyers — are most likely
to consider a climate risk when determining where to shop for a
home. Across generations, a majority of shoppers reported taking
into account at least one climate risk when looking for their next
home.
|
Total
|
Gen Z
(Ages
18–28)
|
Millennial
(Ages 29–43)
|
Gen X (Ages
44–58)
|
Boomers &
the
Silent Generation
(59+)
|
Share of prospective
buyers who
considered at least one
climate risk
|
83 %
|
84 %
|
86 %
|
82 %
|
70 %
|
Share of buyers who
considered each climate risk:
|
|
|
|
|
|
Flood
|
41 %
|
36 %
|
42 %
|
41 %
|
44 %
|
Extreme
temperatures
|
37 %
|
37 %
|
44 %
|
30 %
|
26 %77
|
Wildfires
|
37 %
|
39 %
|
37 %
|
36 %
|
37 %
|
Hurricane
|
33 %
|
33 %
|
36 %
|
30 %
|
22 %
|
Drought
|
31 %
|
30 %
|
35 %
|
27 %
|
23 %
|
While climate risk is affecting attitudes, it isn't to the point
where majorities of buyers are considering a move to a region they
consider less risky. About half plan to remain in areas that pose
the same climate risks they already face. Some are even thinking
about moving to areas with more risks. Only 23% reported that they
are considering homes in areas that they believe to be safer from
the dangers of climate disasters.
Compared to where
they live now, prospective buyers are considering
moving to places with:
|
Total
|
Fewer climate
risks
|
23 %
|
More climate
risks
|
27 %
|
The same climate
risks
|
49 %
|
Affordability is still the greatest hurdle for consumers,
especially first-time home shoppers, who tend to accept what they
can afford. It takes nearly 12 years for a typical first-time
buyer to save up for a down payment. Zillow home listings display
down payment assistance, and a new app filter helps
shoppers understand their actual monthly mortgage cost rather than
a home's list price. Working with a knowledgeable real estate
professional is a great way to navigate both the affordability
hurdle and climate challenges in today's home shopping search.
Zillow also publishes industry-leading research to help inform
consumers, increase transparency and shape the conversation in real
estate.
Zillow's forthcoming Consumer Housing Trends Report survey of
buyers is slated to be published this fall. The study was fielded
between April and July 2023 and
surveyed nearly 12,000 prospective buyers. The full report will
include a detailed summary of the climate research, as well as
broader trends.
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and
ZG) is reimagining real estate to make it easier to unlock life's
next chapter. As the most visited real estate website in
the United States, Zillow® and its
affiliates offer customers an on-demand experience for selling,
buying, renting, or financing with transparency and ease.
Zillow Group's affiliates and subsidiaries include Zillow®;
Zillow Premier Agent®; Zillow Home Loans™; Trulia®; Out East®;
StreetEasy®; HotPads®; and ShowingTime+™, which houses
ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans,
LLC is an Equal Housing Lender, NMLS #10287
(www.nmlsconsumeraccess.org).
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