Redfin reports more people moving in than moving out in places experiencing severe drought

Estimated $17 trillion worth of homes – About 25 million properties – Severe drought in August , Up 42% year over year SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN)–based on U.S. metropolitan area More than half of households in about three-quarters of U.S. metropolitan areas experienced a severe drought in August, with more people moving in than moving out in recent months, according to the data. A new report from technology-driven real estate brokerage firm Redfin (redfin.com). In 34 (26%) of 129 metropolitan areas analyzed by Redfin, more than 50% of households experienced severe drought in mid-August. Of these 34 metros, 25 (74%) experienced net inflows in the second quarter. Net inflow means more Redfin.com users are looking to move in rather than leave. Of the 99 metros for which Redfin has 2021 data, only 23 (23%) had more than 50% of households experiencing severe drought in mid-August 2021. Of these 23 metros, 16, or 70 percent, saw net inflows in the second quarter of 2021. “Many people consider climate risk when deciding where to live, but others Factors, such as affordability, tend to take precedence as rental costs are rising and monthly mortgage payments for homebuyers are nearly 40% higher than they were a year ago,” said Redfin economist Sebastian Sando Val-Olaskoga. “Drought may also not scare people away as much as fire or flooding, which can destroy homes. Nonetheless, homeowners and buyers should be aware that if water shortages force residents to leave en masse, the drought danger could eventually weaken them The value of homes.” An estimated $17 trillion worth of homes (about 25 million properties) in the metros analyzed by Redfin experienced a severe drought in mid-August 2022, more than a year ago of $12 trillion (14 million properties), an increase of 42%. The increase has been driven in part by a surge in house prices over the past year, but also has to do with the location of drought-prone properties. Los Angeles, San Jose and New York — the three most expensive U.S. housing markets — were among the largest metros facing a severe drought in mid-August. Dallas, San Antonio and Sacramento, Sun Belt metros with soaring home prices due to the influx of new residents are also in the top 10. Much of the drought-prone U.S. is located in the Sun Belt, which has seen a sharp rise in popularity in recent years as people get priced out of expensive coastal cities. From 2016 to 2020, not only are high-risk areas facing drought, heat, fire and flooding, but more people move in than move out. The 50 U.S. counties with the largest proportion of households at high risk of drought increased their populations by an average of 3.5 percent during this period due to positive net migration. This trend has intensified during the pandemic, as remote work has made relocating to a relatively affordable area more feasible. In Las Vegas, Sacramento and San Antonio, influx of new residents coincides with severe drought Mid-August , 100 percent of households in 13 metropolitan areas experienced severe, extreme, or unusual drought: Las Vegas, Bakersfield, CA, Austin, TX, Killeen, TX Vessel Leah, San Antonio, Dallas, Reno, Nevada, Chico, CA, Salt Lake City, Sacramento, CA, Fresno, CA and Salinas, CA. All but two of those metros — Visalia and Salt Lake City — saw more people looking to move in than move out in the second quarter. Of the 14 metros, Sacramento had the largest net inflow, with 9,640 Redfin.com users looking to move in rather than leave in the second quarter. It was followed by Las Vegas (8,597), San Antonio (5,335), Dallas (4,964) and Bakersfield (2,576). “Out-of-towners are still flocking to Vegas because they want lower taxes, cheaper groceries and gas, more affordable housing, and less transportation. It’s getting more affordable in almost everything Moving to a state with lower taxes is a great way to cut expenses when it’s expensive,” said Lori Garlick, a local Redfin real estate agent. “Homebuyers have expressed concerns about drought, especially now that Lake Mead shrinking is in the news, but drought risk isn’t a deal breaker for most of my clients. I did get one buyer to give up on moving Las Vegas, because they were worried that there would be no water in a few years, but they ended up moving to Arizona, which was also threatened by drought.” Nevada passed a law last year requiring Remove “non-functional” grass by the end of 2026 to save water. Starting Sept. 1, Las Vegas homeowners won’t be able to own pools larger than 600 square feet — a rule that could affect high-end home buyers with ambitions for larger pools. “It will be interesting to see if the new water restrictions affect the migration to Las Vegas,” Garrick said. “Let’s say you’re a green thumb from California, used to trees and lawns, and you’re tossing between drought-prone Las Vegas and drought-prone Colorado. Las Vegas’ rules restricting vegetation might give you a choice Colorado.” The influx of immigrants has exacerbated climate dangers in some areas. In Utah, for example, population growth was a factor in the drying up of the Great Salt Lake. If it continues to recede, toxic chemicals in the lake bed could be absorbed in the storm and poison residents. The Salt Lake City metro experienced net outflows in the second quarter, but surrounding areas, including Wasatch County, have seen population increases in recent years. To view the full report, including a metropolitan-level summary, visit: https://www.redfin.com/news/drought-migration-2022/ About Redfin Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing through brokerage, instant home buying (iBuying), leasing, lending, title insurance and renovation services. We sell the house at a higher price and charge half the fee. We also operate the #1 real estate brokerage website in the country. Our homebuying clients see the home first with on-demand tours, and our loan and title services help them close quickly. Customers who sell their home can get an instant cash quote from Redfin or have our renovators fix their home for a premium price. Our rental business enables millions of people across the country to find apartments and homes for rent. Since our launch in 2006, we’ve saved our clients over $1 billion in commissions. We serve more than 100 markets in the US and Canada and employ over 6,000 people. For more information or to contact a local Redfin Realtor, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, please email p[email protected]. To view Redfin’s newsroom, click here. View source version at businesswire.com: https://www.businesswire.com/news/home/20220831005262/en/ Redfin Reporter Services:
Isabel Novak, 414 – 861-5861 [email protected] Source: Redfin Posted on August 31, 2022