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

Advertisement
leaderboard2 - default

Related Stories

Market Data + Trends

A Look at Homeownership Rates Across the Nation

Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners

Housing Markets

4 Cities Where Housing Inventory Now Exceeds Pre-Pandemic Levels

San Antonio leads with the greatest surge in the number of homes available post-pandemic

Housing Markets

10 Markets Where First-Time Homebuyers Can Get a Foot in the Door

Buying a home can be particularly challenging for first-time buyers in today's market, but these markets hold promise with more affordable options 

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

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.