Redfin: Climate change will exacerbate U.S. housing shortage

by Lindsey Wells

Climate change will negatively impact the already-stunted housing inventory in the U.S., according to a recent Redfin report.

The housing market is short 3.8 million homes of what is needed to meet the country’s demand. Active listings of homes for sale are down 22% from 2020, while home sale prices are up 13%.

Rapid climate change could cause some homes to become unlivable, depleting the housing stock and driving demand for resilient homes.

The effects of global warming will be increasingly expensive to homeowners, who can expect higher energy bills and maintenance costs. Insurance premiums will go up and mortgage rates may escalate, the report said.

One in five Americans believes climate change is already impacting home values, according to a Redfin survey of over 3,000 U.S. residents. Nearly half (49%) of the respondents planning to move in the next year cite the risk of natural disasters as the reason.

Just over half (52%) of homeowners said they conducted climate research before moving to their current homes. The survey showed that renters are less likely than owners to do climate research before moving to a new home.

The risk of wildfires in the U.S. is increasing, with more than a third of Utah homes in danger of burning. California had 10,431 reported fires in 2020, the highest in the U.S., followed by 2,524 fires in Arizona.

The median sale price of homes with high flood risk increased over the past year to $402,010. Homes with low flood risk sell for an average of $353,783, the report said.

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