Up To 90 Percent Of Home Buyers Choosing Based On This One Factor
New data from Zillow and Bloomberg shows that as many as 90% of home buyers are now factoring in climate and natural disaster risk to their choice of where they are buying a home.
How might this impact the real estate market? How will it affect property investors? How can you stay ahead of it, and use it to your advantage?
Climate And Disaster Risk
The data shows that nationally 83% of buyers are weighing this factor in their home buying choices. Including hurricanes, flooding, wildfires, droughts, and extreme temperatures.
Many are just tired of dealing with the same issues every year, and seeing their lives interrupted, or homes damaged again and again.
Others are just thinking forward as they try to make the best home investment possible.
How Will It Impact The Market?
The most obvious answer is that this shift in awareness and decision making will alter where the most volume of demand is for home purchases and investment properties.
However, a Zillow survey interestingly shows at least one quarter of respondents reporting they are actually moving to a riskier, rather than safer area.
This may be primarily due to other drivers in the current market. Such as rising crime in some cities, and lack of affordability in Northeast states.
We may see old high end housing markets continue to become more dominated by second residences, with buyers choosing primary residences in safer and more affordable areas.
It is not just about geographic risk either. A lot of it is also about specific properties. For example, choosing newer inventory that has been built to higher standards, and at higher elevations. Which in some areas is causing issues and potential devaluation for existing older homes that are now flooding due to run off from higher neighbors.
Staying Ahead Of The Curve
As a real estate investor it is vital to evolve with market shifts like this.
It may influence where you target making real estate offers in the next few months and years. As well as the types of properties you are targeting, and how you formulate and price your house offers.
No matter where you are buying and selling homes, use this as a big highlight in your marketing. Point out security features, like new hurricane shutters, adherence to new building codes, and where your listings have low risk levels compared to your competition.
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