Some will opt to move out of risky areas altogether, while others will stay put but invest in making their homes more resilient to disaster.”įairweather continued: “As more house hunters become aware of climate risk, homes in endangered areas will likely receive fewer offers, causing home values to fall. “Equipping people with flood-risk information helps them make more informed decisions. Before Redfin’s experiment, that was just a hypothesis,” said Redfin Chief Economist Daryl Fairweather. “We now have definitive evidence that the risks posed by climate change are affecting where Americans choose to live. When users who viewed homes with lower risk (minimal, minor, moderate and/or major) prior to the study gained access to flood-risk scores, there was no statistically significant change in the risk level of homes they proceeded to bid on. Redfin 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. 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. 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%. That’s according to a three-month randomized controlled trial involving 17.5 million users, half of which had access to property-level flood-risk scores (treatment group) and half of which did not (control group). (NASDAQ: RDFN) - Homebuyers who have access to flood-risk information when browsing home listings online are more likely to view and make offers on homes with lower flood risk than those who don’t have access, according to a new report from Redfin ( ), the technology-powered real estate brokerage. Redfin users who viewed homes with severe and/or extreme flood risk prior to a Redfin experiment proceeded to bid on homes with 54% less risk after gaining access to flood-risk data
0 Comments
Leave a Reply. |