A recent study from Redfin highlights a fascinating trend in the housing market: older homebuyers are more likely than younger buyers to purchase properties in areas with significant climate risks. The report sheds light on how different generations prioritize lifestyle and financial considerations when choosing where to live, often balancing these decisions against increasing environmental challenges.
Key Findings from the Redfin Report
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Extreme Heat Risks:
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Older Buyers (65+): 36.9% of home purchases last year were in counties with high extreme heat risk.
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Younger Buyers (<35): Only 32.3% of their purchases were in similar high-risk counties.
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Nearly all homes (96.2%) in counties where older buyers took out the most mortgages face high heat risk, compared to 59.2% in counties favored by younger buyers.
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Flooding Risks:
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Older Buyers (65+): 13.3% of their home purchases were in counties with high flood risk.
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Younger Buyers (<35): 9.8% of their purchases were in such areas.
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Retirement Hot Spots Drive Risky Buying:
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Popular retirement locations like Arizona and Florida are prime examples. Arizona’s heat extremes and Florida’s susceptibility to flooding illustrate the trade-offs retirees are willing to make for lifestyle benefits.
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Why Do Older Buyers Take on More Risk?
Older buyers often prioritize retirement-friendly locations with warm climates and scenic beauty, even if it means facing higher climate risks. As Redfin real estate agent Rafael Corrales put it, “When I explain to buyers that they can get more bang for their buck and lower flood risk a little further inland, they often tell me, ‘Rafael, we came to Florida for the waterfront views.’”
Conversely, younger buyers are drawn to urban job centers like Boston or Chicago, where climate risks such as extreme heat and flooding may be less of a concern. Their choices reflect career and economic priorities over lifestyle considerations.
Massachusetts: A Case Study in Climate Risk
Suffolk County offers a localized perspective on these trends:
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High Heat Risk: 100% of homes in the county face high heat risk.
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High Flood Risk: 22% of homes in the county are prone to flooding.
These statistics underscore the importance of evaluating climate risk in both urban and coastal areas, where changing weather patterns are increasingly impacting property values and livability.
What This Means for Buyers
Understanding climate risks is crucial for buyers of all ages. Here are some considerations:
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Older Buyers: Balance the desire for scenic and lifestyle-focused locations with the potential long-term challenges posed by climate risks like extreme heat and flooding.
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Younger Buyers: Factor climate resilience into decisions, particularly when investing in areas with urban heat islands or inadequate infrastructure to handle severe weather.
Explore Your Options with Cape Cod Experts
At Guthrie Schofield Group, we specialize in helping buyers navigate Cape Cod’s unique market—balancing lifestyle aspirations with practical considerations like climate resilience. Interested in waterfront properties or homes further inland with lower risk? Contact us to explore options tailored to your needs.
Stay informed about real estate trends and climate considerations by visiting our blog for more insights.
