In 2023, approximately 37% of homes purchased by individuals over 65 years of age were located in areas with a high risk of heatwaves, compared to 32.3% of homes purchased by individuals under 35 years of age. .
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A recent Redfin analysis found that older Americans are increasingly buying homes in areas with higher rates of climate risk than younger adults. This trend highlights a generational divide in how climate risks are considered in home-buying decisions, with older adults prioritizing lifestyle preferences over environmental concerns.
In 2023, approximately 37% of homes purchased by individuals aged 65 and over were located in areas with a high risk of heatwaves, compared to 32.3% of similar homes purchased by individuals under 35. Ta.
Similar trends are evident for flood and fire risks. Among older buyers, 13.3 percent of purchases were in areas at high risk of flooding, compared to just 9.8 percent for buyers under 35. Additionally, 3.7 percent of homes purchased by older Americans were in wildfire-prone areas, compared to 3.7 percent for younger buyers. Only 2.6%.
Several factors contributed to this disparity.
Older people, especially retirees, often prioritize sunny or coastal locations when choosing a retirement destination. Florida, a state long popular with retirees, faces threats from hurricanes and rising sea levels, while Arizona, another popular state, is increasingly affected by extreme heat.
“Retirees understand the risks of moving to Florida, but many still believe the benefits outweigh the drawbacks,” said Rafael Corrales, a Miami-based Redfin Premier Real Estate agent. he said. “When I explain to buyers that they can get a higher return and reduce the risk of flooding by moving a little further inland, they often say, ‘Rafael, we came to Florida for the waterfront views.’ It is said.”
These decisions are often made with limited consideration of flood risk. Only 31 percent of baby boomers consider climate change when purchasing a home, compared to 56 percent of millennial buyers and 50 percent of Gen Z.
Younger generations are more likely to prioritize climate security, perhaps because they expect to deal with risks over the long term.
For younger buyers, proximity to urban job centers is often a priority. Cities like Boston, Chicago, and Minneapolis remain attractive for their job opportunities and relatively low climate risks.
However, the rise of remote work and the expansion of Sunbelt metropolitan areas is beginning to shift this dynamic, giving younger buyers the opportunity to consider a wider range of locations.
Economic realities further complicate the situation. The intensification of natural disasters is driving up insurance premiums, HOA fees, and property taxes in high-risk areas.
Buyers are increasingly asking sellers about insurance costs and requesting contact information for favorable brokers to gain a negotiating advantage, Corrales said.
The analysis also examined the geographic distribution of climate risk by age group. In counties where older buyers account for the largest share of mortgages, 96.2% of homes face high heat risk, 24.6% face high flood risk, and 35.7% face high fire risk.
By contrast, in counties with a majority of buyers under 35, 59.2% faced heat risk, 16% faced flood risk, and 19% faced fire risk.
The findings are based on Redfin’s analysis of First Street climate risk data and Mortgage Disclosure Act (HMDA) data for primary residential mortgage originations.
Email Richelle Hamiel
