Climate Risk is Holding Homebuyers Back

Concerns over climate risk are growing, causing Americans to pull back from their home purchasing plans. According to a recent survey from online lending platform LendingTree, 68% of Americans are worried that climate-related hazards could impact their home over the next decade. Additionally, 72% say they believe climate risks will get worse over the next decade.

What are Americans’ biggest climate concerns?

Most Americans expressed concern over power outages due to extreme weather. That was the top concern for 40% of homebuyers. Winter storms and extreme cold is a concern for 36% of survey respondents, and then severe storms, according to 34% of respondents. Additionally, 32% cited extreme heat as a concern, followed by 23% who are most concerned about flooding.

How are these concerns affecting the housing market?

Some homeowners are holding back from making purchases over concerns about climate change. Overall, 30% of homeowners say they’ve decided not to buy or make an offer on a home due to concerns about climate. That share is much higher for younger prospective buyers. This is true for 62% of Generation Z and 46% of Millennials. 

While extreme weather is a major concern, rising costs associated with climate risk adds another layer. Of the 88% of homeowners with home insurance, 56% of those policyholders say their premiums have gone up in the past year.