With climate risks threatening more communities, providing clear, accessible risk information to potential homebuyers can help households make informed decisions and inform local resiliency efforts.

A new report from Redfin shows that making flood risk data available to homebuyers has a significant impact on their bidding behavior, with homebuyers who view flood risk data more likely to bid on lower-risk homes. Lily Katz, Daryl Fairweather and Sebastian Sandoval-Olascoaga describe the report for Redfin News.
According to the report, “Redfin users who viewed homes with an average flood-risk score of 8.5 (severe/extreme risk) prior to the study went on to bid on homes with an average score of 3.9 (moderate risk) after gaining access to flood-risk data—a decrease of 54%. By comparison, users who viewed homes with an average score of 8.5 before the study but did not get access to risk data went on to bid on homes with an average score of 8.5.” The authors note that “We only saw this impact on users who had been viewing homes with severe/extreme risk prior to the study, suggesting that flood danger is currently unlikely to change homebuyer decisionmaking unless it’s substantial.”
Notably, despite the shortage of available homes and skyrocketing prices during the study period, “flood-risk data caused Redfin users to become more selective about the homes they viewed and bid on—a sign that many homebuyers take climate risk seriously.”
While individual households can make the decision to move away from flood-prone areas, Redfin Chief Economist Daryl Fairweather says “Unfortunately, that may mean passing on the risk to someone else. Governments can help prevent that by purchasing and demolishing at-risk homes, and subsidizing climate-resilient improvements. Upgrades like landscaping, flood walls and flood openings to direct water away from homes can help an at-risk property retain value.”
FULL STORY: Homebuyers With Access to Flood-Risk Data Bid on Lower-Risk Homes

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