Home buyers may not consider disaster risk when looking at homes to buy, but maybe they should. After all, a new analysis from the National Association of Realtor’s consumer website found nearly 25 percent of the country’s housing stock is susceptible to severe wind, flood, or fire risk. Jiayi Xu, an economist at the site, says buyers may be missing the danger, and the cost. “Price is still the biggest motivator for a lot of home shoppers, even in places where climate risk is well known,” Xu said. “But that doesn’t mean the risk disappears. It shows up later, in insurance premiums, HOA fees, and financing, often after the sale is already done.” In other words, higher risk homes often come with higher costs, even if the price seems right. That’s why buyers have to factor in all of the costs and risks of buying a home before making an offer. For now, though, demand is strong in some of the nation’s highest risk areas, despite lower risk options nearby. (source)
