Pandemic boom drives up sales for vacations homes with high natural disaster risk

“The threat of climate change isn’t the top concern for a lot of homebuyers, which means they often prioritize factors like warm weather and proximity to the beach over avoiding natural-disaster risk,” said Sheharyar Bokhari, a senior economist at Redfin. “Second-home owners, in particular, have another place to live if disaster strikes—another reason climate danger may not feel like a pressing issue. But house hunters should be aware that purchasing in a disaster-prone area not only puts them and their home at risk, but their finances as well. Home values in climate-endangered places may fall in the coming years as consumers learn more about the risks to properties in these areas.”

Redfin’s ClimateCheck data revealed that heat and storm are the two most common risks faced by pandemic second-home buyers, seeing as these risks are common in popular destinations like Florida and Arizona.

According to Redfin, 94% of the second homes bought in the last two years are at risk of high heat, while 78% are vulnerable to storms. Moreover, 26% of these homes face high flood risk, 23% face high fire risk, and 21% face high drought risk.

“House hunters from out of town ask about climate change because they’re very concerned about flooding, but most of them don’t change their minds,” said Cristina Llanos, a Redfin agent in Miami. “They hear horror stories of hurricanes, but generally still move forward. People want to talk about it, but it typically doesn’t make or break their decision.”