Climate change is causing more extreme weather, and it’s going to cost the U.S. real estate market over a trillion dollars!
Americans are expected to leave high-risk areas, but not all will.
Some will stay despite the dangers, chasing better jobs or nicer neighborhoods.
So, where are the winners and losers in this “climate migration”?
What’s Happening with Real Estate?
According to a new report from First Street, America’s real estate will face major losses as people move away from areas at high risk of climate disasters.
It’s predicted that by 2055, over $1 trillion will be lost in property value. Why?
People are leaving places like Florida, Texas, and other high-risk areas for cities that are more climate-resilient.
But here’s the twist: Some areas, like big cities in Texas, will keep growing, even though they face risks like flooding and storms.
Why? Local attractions, jobs, and lower costs keep people moving there.
These “risky growth” areas will see their property values drop, but not by much.
Other “climate abandonment” areas, where things are looking bad, will lose a lot more people.
Where Will People Go?
The report mentions a few “climate havens” that will likely stay safe.
Parts of the Midwest, like Dane County in Wisconsin and Franklin County in Ohio, are predicted to hold up well as climate change worsens.
But no area is 100% safe, and people are already making decisions based on climate risk.
They want to live near their families and jobs, but in safer neighborhoods.
My Opinion:
It’s pretty wild to think that climate change could change where we live so drastically in just a few decades.
It’s not just about weather anymore, it’s about finding a place to live that’s affordable and safe.
As more people wake up to climate risks, those looking to buy homes will need to think long-term.
It’s going to be interesting to see how these “climate havens” grow and how the places at high risk adapt to the changes.
So, What Does This Mean for You?
If you’re house hunting, it might be time to start looking at areas that are less likely to face crazy weather events in the future.
Local amenities and the economy still matter, but the cost of living in risky areas may become too high.
Whether you’re thinking of moving or just curious, it’s a reminder to think about the climate when making decisions for the future.
Get ready for a new kind of migration one driven by weather, not just jobs!