flexiblefullpage - default
Currently Reading

Drought Regions Are Seeing an Influx of New Homebuyers—Here's Why

Advertisement
billboard - default
Environmental

Drought Regions Are Seeing an Influx of New Homebuyers—Here's Why

Homebuyers undaunted by severe droughts are heading to at-risk metros like Los Angeles and Las Vegas en masse


September 1, 2022
Los Angeles skyline seem from distance in dry forest experiencing drought
Image: Stock.adobe.com

Roughly 74% of U.S. metros where more than half of homes experienced intense drought in August have seen more people move in than out in 2022, according to Redfin. In 34 of the 129 metros analyzed by Redfin,  more than 50% of homes experienced intense drought in mid-August, but 25 of those 34 metros still saw net inflows in the second quarter. 

Unfazed by climate risks and attracted by affordability, incomers flocked to popular cities such as Los Angeles, San Jose, Calif., and New York City, all of which are in the throes of an intense summer drought. Buyers also relocated to Sun Belt metros such as Las Vegas, Bakersfield, Calif., and Austin, Texas, where 100% of homes experienced severe drought in mid-August.

“Many people take climate risk into consideration when deciding where to live, but other factors, like affordability, often take precedence given that rent costs are rising and monthly mortgage payments for homebuyers are up nearly 40% from a year ago,” said Redfin Economist Sebastian Sandoval-Olascoaga. “Drought may also not be scaring people off to the same extent as fires or flooding, which can physically decimate homes. Still, homeowners and buyers should be aware that drought danger could ultimately dent their home’s value if a lack of water forces residents to leave en masse.”

Read more

Related Stories

Housing Markets

10 Most Affordable Metros for First-Time Buyers in 2023

With rising shares of home price reductions, high relative housing supply, and mortgage and rent affordability, these metros offer a starting point for budget-conscious first-time homebuyers

Housing Markets

Mid-Pandemic Homebuying Hotspots Are the First to See Prices Fall in a Market Correction

The nation's most popular homebuying destinations during the mid-pandemic Great Migration are now among the first locations to see home prices fall during a market slowdown

Housing Markets

Housing Affordability in California Fell to a 15-Year Low in August, but a Market Correction Could Help

Buying a home in California is anything but affordable after a two-year run-up in regional housing costs, but as the market cools, the Golden State is seeing a complete reversal in home price growth

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.