A new Zillow study reveals that climate risks are a key consideration for a growing number of Americans when it comes to buying a home. The study of Zillow's forthcoming Consumer Housing Trends Report shows that over four out of five prospective homebuyers consider climate-related factors in their decision-making process.
"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."
The research indicates that the sentiment is not equally shared across the nation. While a majority of prospective buyers in every U.S. region consider at least one form of climate risk, those in the West are most likely to view climate risks as "very" or "extremely" impactful. In contrast, one-third of homebuyers in the Midwest and South feel climate risks are either "not very impactful" or "not impactful at all."
The study reveals generational differences as well. Millennial and Gen Z shoppers — who make up 54% of all homebuyers — are more likely to factor in climate risk in their decision-making. With the median age of today's homebuyers standing at 39 and first-time buyers constituting half of the market, the influence of younger generations is significant.
Despite the growing awareness of climate risks, affordability remains the most significant hurdle for many homebuyers, particularly first-timers. A startling find is that it takes nearly 12 years for a typical first-time buyer to save up for a down payment.
While climate risk is affecting attitudes, it isn't to the point where the majority of buyers are considering a move to a region they consider less risky. About half plan to remain in areas with 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.
A July report from Redfin found that buyers are actually flocking to flood-prone areas because they are more affordable. The most flood-prone U.S. counties saw 384,000 more people move in than out in 2021 and 2022 — a 103% increase from the prior two years, when 189,000 more people moved in than out.
Zillow's full Consumer Housing Trends Report, which surveyed nearly 12,000 prospective buyers between April and July 2023, is set to be published this fall.
