Climate Migration and Real Estate: Where to Buy Before the Boom
When it comes to the world of real estate, location is everything. As the effects of climate change continue to intensify, this old adage has never been more relevant. In recent years, the phenomenon of climate migration – the movement of people from areas affected by natural disasters and environmental challenges – has become a major factor in real estate market trends. With certain areas at risk for increased flooding, wildfires, and other natural disasters, buyers and investors are looking for safe havens that will not only provide a stable home, but also hold value in the years to come. In this article, we’ll explore the impact of climate migration on the real estate market and provide insight on where to buy before the boom.
The Rise of Climate Migration
Climate migration has been a growing phenomenon in recent years, as the effects of climate change – such as rising sea levels, extreme weather events, and drought – have forced people to flee their homes in search of safer, more habitable areas. According to a report by the World Bank, global extreme weather events have quadrupled since the 1980s, causing significant displacement and relocation of populations.
This movement is not only limited to developing countries. In the US, areas such as California and Florida, which are prone to wildfires and hurricanes respectively, have seen a rise in climate migration. In fact, a recent study by real estate company Redfin found that over 33,000 people left California due to its extreme wildfires in 2019 alone.
The Impact on Real Estate
With climate migration on the rise, the real estate market is feeling the impact. The influx of people into certain areas is driving up demand for properties, leading to rising prices and limited availability. This has created a hot market for real estate in areas that are considered safe havens from the effects of climate change.
On the other hand, areas that are at high risk for natural disasters are experiencing a decrease in demand and value. Homeowners in these areas are finding it difficult to sell their properties, as buyers are wary of investing in an area that may be at risk for future disasters. This can have a significant impact on property values and investments in these areas.
Where to Buy Before the Boom
Mountain Towns
One trend emerging from climate migration is the rise in popularity of mountain towns. These areas offer high elevation and a cooler climate, making them less susceptible to natural disasters such as flooding and hurricanes. In addition, they provide the scenic beauty and outdoor recreation opportunities that are in high demand as people seek to escape urban areas and embrace a more sustainable lifestyle.
Midwestern States
The Midwest is another region that has seen an increase in demand due to climate migration. With its moderate temperatures, low risk of natural disasters, and generally affordable cost of living, this region has become an attractive destination for those seeking refuge from more disaster-prone areas.
Coastal Cities with Preparedness Plans
Not all coastal cities are at equal risk for the effects of climate change. Some cities, such as Miami and New Orleans, are investing in flood protection measures and developing climate-resilient infrastructure. These forward-thinking cities may offer opportunities for real estate investment, as they prepare for the impact of climate change and reduce the risk for future disasters.
Conclusion
Climate migration is a major factor in today’s real estate market. As people in disaster-prone areas seek refuge in safer locations, the demand for properties in these areas is increasing. It’s important for buyers and investors to consider the potential impact of climate change on their investments and make informed decisions when it comes to buying real estate. By keeping an eye on the trends and investing in areas that are less vulnerable to the effects of climate change, one can make a wise and sustainable real estate investment decision.
