Climate Change Vulnerability Is Increasingly an Issue for Homebuyers  

It’s not surprising, given the extreme weather we’re witnessing, including here in Colorado, that 63% of people who moved during the pandemic say that climate is or will be an issue where they now live, according to a Redfin survey of 1,000 Americans who moved since March 2020. Many of the respondents said they researched climate issues before making their move.

In another survey by ValuePenguin, more than half of Americans fear they would not be able to recover financially from a climate-induced catastrophe. An earlier Redfin survey showed that Americans between the ages of 35 and 44 were most likely to say that “natural disasters, extreme temperatures and rising sea levels” all influenced or will influence their decisions on where to move. 

Here in Colorado we’ve been blessed to experience fewer and less dramatic impacts from climate change. But those impacts are knocking on our door. Consider last summer’s fire smoke, or this month’s hurricane-force winds, or our current drought.

Our water supply depends on snowpack, and rising winter temperatures result in more rain and less snow. Even though we’re east of the continental divide, we, like the Western Slope and the states west of us, are dependent on the dwindling Colorado River water, which is transported from the Western Slope to the Front Range through tunnels.

Because we experience fewer effects of climate change, I foresee increased migration from other parts of the country, including “tornado alley,” to Colorado as their current homes experience climate change’s increasing impact.

In researching this topic, I came across a Fall 2021 white paper from SitusAMC entitled “The Burgeoning Insurance Costs for Real Estate.” It assesses the impact of increased losses from catastrophes, mostly caused by climate change.

Although the focus of the white paper is on the ability of insurers to cover increased claims and the effect of those increased claims on residential and commercial insurance rates, it also made some interesting observations about the migration of people to and from states with high insurance claims and expected future risks from climate change.

So guest what? With the sole exception of California, people are moving to states where they will be more at risk rather than less. Texas, which accounted for 40% of all insurance claims in the first half of 2021, has had the highest influx of people from other states. Florida, despite its risks, was a close second.

In recent years I’ve seen many of my sellers relocating to Florida, and it’s hard for me to understand.

So there you have it — a Redfin study that says Americans are considering climate change risks before making their move, while another study shows that more people are moving into states and areas of high risk. Could both be true? I’m not sure what to believe now!