Residential Real Estate News
Older Americans More Likely to Buy Disaster-Prone Homes
According to a new Redfin report, older Americans are more likely to buy homes in areas with significant climate risk compared to younger Americans. Last year, over one-third (36.9%) of home purchases by people aged 65 and older were in counties with high extreme heat risk, compared to less than one-third (32.3%) among buyers under 35.
The trend persists for flood and fire risks:
- Flood Risk: 13.3% of purchases by people 65+ were in high-risk counties, compared to 9.8% of purchases by those under 35.
- Fire Risk: 3.7% of purchases by people 65+ were in high-risk areas, compared to 2.6% among younger buyers.
"Retirees know the risks of moving to Florida but often feel the benefits outweigh the downsides," said Rafael Corrales, a Redfin Premier real estate agent in Miami. "I often suggest properties further inland to reduce flood risk, but many buyers insist, 'We came for the waterfront views.'"
Corrales noted that buyers increasingly inquire about insurance costs and sometimes request sellers share their broker's contact information if rates are favorable. This strategy gives buyers leverage in negotiations with insurers and influences their purchasing decisions.
Income level also plays a role, but older buyers across all income brackets remain more likely to move to risky areas
For counties where buyers 65+ accounted for the largest share of mortgages last year:
- 96.2% of homes face high heat risk, compared to 59.2% in counties where buyers under 35 dominate.
- 24.6% of homes face high flood risk (vs. 16% in younger-skewed counties).
- 35.7% face high fire risk (vs. 19% in younger-skewed counties).
Why Older Americans Are More Likely to Buy Homes in Risky Areas
- Desirable Retirement Hotspots Overlap with Climate Risks: Many popular retirement destinations, such as Florida and Arizona, are attractive for their sunny weather and coastal appeal. However, these areas are also prone to extreme climate risks--like hurricanes, rising sea levels, drought, and extreme heat. Florida's appeal is further boosted by its lack of retirement income taxes. Yet, rising insurance costs, HOA fees driven by worsening natural disasters, and soaring property taxes are beginning to offset that financial benefit.
- Younger Americans Prioritize Job Centers with Lower Climate Risks: Younger people often move to major urban job hubs--like Boston, Chicago, and Minneapolis--which tend to have lower climate risks than Sun Belt retirement hotspots. However, the rise of remote work and growing Sun Belt metros has begun to shift this trend.
- Generational Differences in Climate Risk Awareness: Older Americans are less likely to factor climate change into their home buying decisions. While over half of millennials (56%) and half of Gen Zers (50%) say climate change influences where they live, only 31% of baby boomers feel the same, according to a Redfin survey. This difference may stem from younger generations' longer-term exposure to climate change consequences and the topic's prominence within younger social circles.
