Houses in California cities are exposed to a high risk of climate, but have values ​​that hold values

Here is today's shocking status: the US real estate, which is exposed to a large Wildfire risk, is worth 9 trillion dollars. It is 7 trillion dollars for the flood risk. For wind risk: $ 17 trillion US dollars. These numbers all come from a new climate -related risk analysis from Zillow. And half of the top 10 cities with the fire -prone real estate value are in California.

California is well represented in this analysis, as there is a housing crisis. There are only more people who want to live in California than houses that they are currently using, ”said the environmental economist Judson Boomhower with UC San Diego.

This lack of housing makes houses more expensive, he noticed. The houses with a high risk of fire in Zillow's report sold more than houses with a low fire risk for 49%.

“These risks have been around for a long time. They get worse, ”he said. “It seems that real estate markets have not fully rated them historically.”

House insurance companies have already started to react – that's why they come up with the house guidelines in California. Real estate prices are back afterwards because the risk of climate is only a factor for the value of a house.

“Many high -risk areas are desirable places where you can live for other reasons, e.g.

That has already changed, she said. Houses with an extreme fire or flood risk selling or going out in the study.

“These houses at risk of fire and flood are simply selling, but to a larger discount than with the initial list price,” said NG.

She added that a higher flood risk dealer also refuses and lifts more mortgage applications.