Older Buyers Continue to Purchase Homes in High Climate-Risk Areas

Despite the risks, older Americans are purchasing homes in areas prone to extreme heat, flooding, and wildfires at far greater rates than younger buyers. According to National Mortgage Professional, 36.9% of homes purchased last year by those 65 and older were in areas with high heat risk, compared with 32.3% of buyers under 35. Similarly, 13.3% of older buyers were more likely to purchase homes in flood-prone areas compared with 9.8% of younger buyers. Additionally, 3.7% of older buyers continue to buy in areas prone to wildfire compared with 2.6% of young homebuyers.

In general, the pandemic accelerated migration trends, with more people leaving urban areas due to population density concerns and increased remote work flexibility. While states such as Florida remain popular retirement destinations, rising costs from natural disasters are reducing its appeal for young people.

Younger buyers’ mindsets about where to move, and why, are evolving in response to different market pressures than those of the generations of homebuyers who came before. Consecutive hurricanes in Florida this fall, for example, are also shaping homebuyers’ views.

In its survey, Redfin found that more than half of millennials (56%) and half of Gen Zers consider climate change when deciding where to live, compared to just 31% of baby boomers. Younger Americans are also less likely to buy homes in risky areas because they generally gravitate toward major urban job centers, which often face lower climate risks. Read more