Does Climate Change Affect Real Estate Prices?

Only if You Believe In It

In the wake of two powerful hurricanes in the U.S. this fall, the scientific evidence that climate change will raise the risk of severe weather events continues to grow.

In some coastal areas such as Hawaii and Florida, roughly one-tenth of all homes are expected to be underwater if sea levels rise by six feet. Zillow estimates that the value of homes at risk of being underwater is U.S. $882 billion.

However, not everyone in the general public seems to agree about the future effects of climate change: In aGallup survey from last year, 42 percent of Americans agreed that global warming will pose a serious threat to their way of life, while a hefty 57 percent disagreed.

Our recent research suggests that beliefs about the effects of projected climate change may impact real estate prices decades before the projected damages are expected to occur. Read full article.