9 Real Estate Markets Where Climate Could Affect Your Home Value

When buying a home, climate may not be your first concern, at least not when it comes to property value and general living costs. But it can have a big impact on how much your home is worth—both now and in the future.

Choosing an area with extreme weather, frequent natural disasters, or the ongoing threat of rising sea levels could affect the value of your home. It could also affect the way homes are built. That doesn’t necessarily mean your property will lose value, but it could.

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GOBankingRates spoke to several real estate experts about how and where climate can affect the value of your home. Here are their answers:

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Flagstaff and Phoenix, Arizona

When buying property in certain parts of Arizona, such as Phoenix or Flagstaff, you should keep the climate in mind.

“Phoenix is ​​located in the low elevation Sonoran Desert, meaning the cities and communities within the metropolitan area are subject to extreme heat exceeding triple digits during the summer and early fall months in the valley,” said Melissa Dierks, real estate agent and managing partner of RE/MAX Fine Properties.

“Phoenix’s desert climate influences home construction in the area. Cooling systems, pools and energy efficiency features like solar panels are often preferred,” she continued. “Phoenix has an estimated 300 days of sunshine a year, making it a great location to use solar energy!”

The climate in Flagstaff is very different, but there are still a few things to consider when buying property.

“Northern Arizona communities in Coconino County like Flagstaff have warm, temperate summers and snowy alpine winters. Flagstaff is about 7,000 feet above sea level, meaning homes in the city must have adequate insulation to keep them warm in the winter. Even though Phoenix and Flagstaff are only two and a half hours apart, the climates are very different,” Dierks said.

“Given Flagstaff’s cooler temperatures and occasional snowfall (which can develop into full-blown blizzards during the winter months due to its mountainous location), homes are often built with better insulation and heating systems,” she continued. “Homes typically have thicker walls, double-pane windows, and efficient heating sources such as furnaces or fireplaces. Additionally, roofs in Flagstaff are designed to withstand winter conditions with snow, sleet, ice, etc.”

The story goes on

In Flagstaff, many homes are built with materials that offer better heat regulation and insulation, while in Phoenix, the materials tend to be more heat-resistant.

Parts of Wisconsin

“Climate change is a pervasive evil that impacts real estate, so when you’re buying real estate, climate change should be at the top of your priority list,” said Gabe Andrews, founder of Cash Homebuyers Wisconsin.

Wisconsin has experienced 50 confirmed weather and climate-related disasters since 1980, according to the National Centers for Environmental Information. These events, including floods, droughts, freezes and severe storms, have each caused more than $1 billion in damages.

However, you must not only consider possible property damage.

“Not only do severe weather events like hurricanes, earthquakes and floods increase insurance premiums, the extreme heat experienced in some states also increases utility costs,” Andrews said. “Not to mention, construction costs are also affected because some materials come from countries or states suffering from the effects of climate change, which in turn causes housing prices to rise.”

Fort Lauderdale and Miami, Florida

Parts of South Florida are particularly vulnerable to rising sea levels, coastal erosion, flooding and extreme storms, all of which can negatively impact property values ​​– if you’re not prepared.

“Properties in hurricane-prone areas like Florida or the Gulf Coast often face significant loss in value due to frequent and severe storm damage,” said Scott Friedson, a multi-state licensed claims adjuster and CEO of ICRS LLC. “I have seen properties in these regions lose a significant amount of their value after disasters because they were not adequately storm-proofed and incurred high repair costs.”

Jersey City and Hoboken, New Jersey

In some New Jersey real estate markets, climate also impacts property values.

“A big concern is rising sea levels and increased flood risk, especially in areas like Jersey City and Hoboken,” said Daniel Rivera, owner of Proactive Property Management. “Properties in flood-prone areas often lose value because of higher insurance premiums and potential water damage.”

But that’s not all. Severe weather events – such as harsh winters or freeze-thaw cycles – can also wreak havoc on home exteriors and infrastructure in these areas. Fortunately, there are ways to protect your home’s value, such as implementing flood protection measures, ensuring proper insulation, and investing in energy-efficient upgrades.

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Riverside, California

Any area of ​​California with a high risk of natural disasters, such as Riverside, may experience impacts to property values.

“Rising temperatures and the increasing frequency of wildfires are a critical issue here in California,” said Joe Stance, real estate expert at Stance Commercial Real Estate. “Properties in high-risk zones have often seen their values ​​drop due to higher insurance costs and potential future damage.”

Other natural disasters such as earthquakes can also drive up the price of building insurance. Houses that are not adequately earthquake-proof can also quickly lose value – and vice versa.

The Gulf Coast

Many Florida real estate markets are located along the Gulf Coast, but those aren’t the only areas where climate plays a critical role in property values. According to Josh Dotoli, a real estate expert at Compass Florida, buyers should also be cautious when purchasing property in Houston or New Orleans.

“The Gulf Coast is frequently affected by hurricanes and severe storms,” ​​he said. “The high risk of property damage and associated costs can impact both property values ​​and buyer interest.”

Other real estate markets where climate could impact property values

“In the United States, we are experiencing significant impacts of climate change that are threatening the homes of millions of people. A prominent example is extreme heat waves that are primarily affecting the southern regions of the country,” said Tamara Jude, a home warranty expert at This Old House.

The increasing frequency and intensity of storms has also led to more flooding and storm damage in many parts of the country, which can cause damage to homes and property values.

“The immediate impact will be a drop in your home price, but also the knowledge that you are in a storm-prone area will go down,” Jude said.

According to Jude, certain real estate markets may be more affected by the climate than others.

“Such frequent storms and heat waves in southern states, including Texas, Florida and Alabama, make them more vulnerable to environmental damage, leading to a decline in real estate prices,” she said. “States in Tornado Alley … are more prone to severe thunderstorms and tornadoes. States near the Gulf of Mexico are also vulnerable to moisture-rich air masses, which are a key component of storms.”

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This article originally appeared on GOBankingRates.com: 9 Real Estate Markets Where Climate Could Affect Your Home Value