Weather plays a major role in where many people decide to retire — and usually, the hotter the better. That’s why so many older Americans settle in Sunbelt states.
But while retirement hotspots like Florida, Arizona and the Carolinas offer plenty of sunshine and warm temps, they also pose a much higher climate risk compared with other parts of the country.
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The seven states most at climate risk are all located in the Southeast or along the Gulf Coast, according to an analysis by SafeHome.org. Those states — Florida, South Carolina, Louisiana, North Carolina, Mississippi, Georgia, and Texas — all face frequent threats of extreme heat as well as hurricanes, tornados and floods. Many also rank among the most popular destinations for retirees and older homebuyers.
New research from Redfin found that older Americans are more likely than younger Americans to buy homes in places with “significant” climate risk. As of 2023, more than one-third (36.9%) of home purchases made by people 65 and older were in counties with high risk of extreme heat. That compares to less than one-third (32.3%) of home purchases made by people under 35.
GOBankingRates unpacked the research and dove into why older Americans are favoring homes in these areas, despite the climate risks.
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What Makes These Hotspots Risky To Live in?
Here were some other highlights of the study:
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13.3% of purchases made by people 65 and older were in counties with high risk of flooding versus 9.8% of purchases by those under 35.
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3.7% of purchases made by people 65 and older were in counties with high risk of fire versus 2.6% of purchases by people under 35.
For its analysis, Redfin looked at climate risk scores from First Street along with Home Mortgage Disclosure Act (HMDA) data covering mortgage originations for primary homes.
High-risk counties are defined as those that rank in the top 10% when it comes to the share of homes facing high fire or flood risk, and the top 33% for heat risk. Climate risk scores are based on a property’s current risk, as well as how that risk is expected to grow over the next 30 years.
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These risks are especially high in Florida, which has suffered through a string of hurricanes and other powerful storms in recent years.
“Retirees understand the risks of moving to Florida, but many believe the pros still outweigh the cons,” Rafael Corrales, a Redfin Premier real estate agent in Miami, said in a press release.
“When I explain to buyers that they can get more bang for their buck and lower flood risk a little further inland, they often tell me, ‘Rafael, we came to Florida for the waterfront views.’”
Why Are Older Americans Moving to These Risky Areas?
Redfin cited the following reasons older Americans are more likely than younger Americans to buy homes in risky areas:
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A preference for warm climates: As Redfin noted, many retirement hotspots are risky for the same reason they’re desirable — being located where the sun is hot and/or along the coast. In addition to states in the Southeast, another popular retirement destination is Arizona, which is prone to extreme heat and drought. Although many Sunbelt states also have lower-than-average living costs, this is offset somewhat by higher property insurance costs.
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Many younger Americans prefer to live in big cities outside the Sunbelt: Cities like Boston, Chicago, Minneapolis, and New York tend to attract younger adults in search of job opportunities and a vibrant social and cultural scene. While these cities can get cold (and expensive), they have much lower climate risks than retirement hotpots like Florida and Arizona.
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Older Americans are less likely to factor climate change into their decisions about where to live: More than half (56%) of millennials and exactly half (50%) of Gen Zers say climate change affects where they choose to live, according to Redfin. In contrast, less than one-third (31%) of baby boomers factor climate change into the decision. One theory is that younger Americans have more awareness of climate change because they will be most impacted by it.
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This article originally appeared on GOBankingRates.com: Older Americans Are More Likely To Buy Homes in High-Risk Climate Areas — Here’s Why