While the COVID-19 pandemic’s negative impact on home values lasted only one quarter, the perceived threat of climate change may have a greater long-term impact on home prices, according to a recent Lending Tree survey.

When 2000 survey participants were asked if they’d consider buying a home in a high-risk coastal zone:

  • More than half (55%) said they definitely wouldn’t
  • 26% said maybe, depending on the home’s location and price
  • The remaining 19% said they definitely would

More than 1 in 5 (23%) survey respondents believe homes will suffer damage from floods and storms due to the impacts of climate change.

Veros, a firm that monitors natural hazard activity and provides the post natural disaster property level impact assessment for mortgage lenders and servicers, said in a release that “their caution is certainly warranted. Climate change is already impacting home values in many parts of the country, especially in coastal zones where increased flooding makes building and buying traditional homes less appealing.”

The company cited a National Bureau of Economic Research working paper that concluded “that homes in flood plains are overvalued by $34 billion because homebuyers don’t fully price in the high risk of climate-related disasters.”

The company did not provide any information about how climate change was impacting property values in any particular part of the country.

The company has made an interactive map of its data available online.

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