As temperatures rise, homeowners face increasing financial concerns related to climate change.
A LendingTree survey reveals that 51% of homeowners worry about climate-related hazards affecting their homes, with millennials (63%) expressing the greatest concern. Severe storms, hurricanes, and flooding are the top threats.
More homeowners are now considering relocating from high-risk areas: 34% of those living in at-risk regions are contemplating a move, and 13% have already relocated. A significant majority (72%) believes that climate change risks should be disclosed during the homebuying process.
Nearly 39% of real estate agents believe climate change is affecting consumer choices about where to live and what homes to buy, according to a Redfin survey.
There’s a nearly even split regarding climate concerns among agents, with 18.4% reporting more concerns and 17.8% less.
Overall, 57% of homeowners would pay more for homes in lower-risk areas, and 17% have been deterred from purchasing homes due to climate concerns, according to LendingTree.
Homeowners are also worried about rising insurance costs, with 70% expecting climate risks to increase their premiums. Approximately 21% report already experiencing increased insurance costs, and 38% have purchased additional coverage.
The cost of a standard homeowners insurance policy in the U.S. is now $2,801, 40% higher than in 2019, due to increased extreme weather, inflation, supply chain disruptions, and the rising costs of rebuilding after claims.
Making homes more environmentally friendly
In addition to worrying about climate risks, homeowners also want to reduce their environmental impact.
Approximately 68% consider environmental sustainability to be at least somewhat important when deciding to purchase a home. That percentage increases to 79% among parents with children under 18 and 78% among millennials.
About 65% of homeowners have invested in renewable energy systems to reduce climate change risks and environmental impact. Common investments include energy-efficient appliances (32%), HVAC systems (26%), smart thermostats (24%), weatherproofing (23%), solar panels (21%), rainwater harvesting systems (9%), and green roofs (3%).
Oakwood Homes offers energy-efficient homes in the Denver area starting in the low $300s.
The company’s advanced systems and windows enhance comfort and reduce energy costs, addressing the importance of energy savings for homeowners.
“We understand that saving energy is an important consideration for today’s buyer because it’s part of the total cost of homeownership, and we recognize that individual comfort and savings matter too,” said Ryan Delp, Colorado market president of Oakwood Homes.
“Oakwood Homes offers ultra-efficient heating and cooling systems to reduce humidity, save energy and improve comfort. Advanced high-performance windows in our homes keep heat in during the winter and out during the summer, maintaining comfort while lowering energy costs.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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