Is Environmental Hazard Risk Good for Home Values? – NMP Skip to main content

Is Environmental Hazard Risk Good for Home Values?

Feb 22, 2018

ATTOM Data report seems to suggest so.

Now, here is some news for those who like to live dangerously: ATTOM Data Solutions is reporting that median home prices in communities within the highest 20 percent for environmental hazard risk appreciated at a faster pace than the overall housing market over the past year, past five years and past 10 years.
 
ATTOM Data Solutions analyzed 8,665 ZIP codes for risks related to superfund sites, brownfields, polluters and poor air quality. The results: A little toxic soil appears to be good for valuation. Median home prices in ZIP codes in the top environmental hazard risk quintile increased 7.4 percent from a year ago on average (compared to 7.1 percent increase nationwide). Furthermore, they were up 57.1 percent from 2012 (compared to 51.1 percent increase nationwide), and were also up 22.2 percent from 2007 (compared to 12.3 percent increase nationwide).
 
Simultaneously, home foreclosure rates in ZIP Codes in the highest quintile for environmental hazard risk were slightly lower at 0.3 percent of all homes with a mortgage than in the overall market with its 0.4 percent rate.
 
Still, there was an exception to the rule. Of the four environmental risk factors analyzed in the report, high Superfund risk ZIP codes appreciated at a slower pace than the overall market and had a slightly higher foreclosure rate than the overall market.
 
The markets with the most combined value of homes in ZIP Codes in the top quintile for environmental hazard risk were Houston ($415 billion), California’s Riverside-San Bernardino metro ($344 billion), Portland ($254 billion); Washington, D.C. ($161 billion), and Chicago ($134 billion). Zip codes with the 10 highest total Environmental Hazard Housing Risk Index values in 2017 were in Denver, Southern California, Portland, St. Louis, North Carolina’s Burlington metro market, Tulsa and Houston.
 
“With housing inventory in short supply, even homes in higher-risk zip codes for environmental hazards are in high demand from buyers looking for lower-priced properties and investors looking for the next up-and-coming neighborhood,” said Daren Blomquist, Senior Vice President with ATTOM Data Solutions. “Buyer demand does seem to have a bit of a limit when it comes to environmental hazards, however. Homes in zip codes with superfunds on the EPA’s national priority list have seen weaker home price appreciation and have higher foreclosure rates than the overall housing market.”
About the author
Published
Feb 22, 2018
Rocket Makes VantageScore Its Default After Testing Finds Borrower Savings

After four months of testing, Rocket will make VantageScore 4.0 its preferred model for eligible retail loans while keeping both scoring options available to brokers

Sep 29, 2026
CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Sep 23, 2026
Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Sep 23, 2026
Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

Sep 23, 2026
Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac