July 26, 2023
How Climate Will Impact Canadian Housing Choices
A study conducted by Re/Max Canada on climate change and the Canadian housing market found that 57 per cent of respondents indicated climate change will affect where they choose to buy a home.
This is due not only to the increase in natural disasters Canada has seen over the last few decades but also, the individual awareness of these disasters on a national and even global scale.
With home buyers now being more informed than ever on these issues – many may factor climate risks into where they will live next or where they would like to settle down.
The cost of living in a high-risk area can be more than what some might imagine. Already,?6 to 10 per cent of homes in Canada are uninsurable for flood risk with the average cost of repairing a flood-damaged home at about $40,000 CAD.Communities that experienced a catastrophic flood between 2009 and 2020 experienced an 8.2 per cent reduction in average sale prices, a 44.3 per cent decrease in listings, and homes listed spent nearly 20 per cent longer on the market than homes in comparable communities that did not experience these events.
This can be a scary thought for homeowners and buyers but on the contrary, homes that are thought to be located in ‘safer' or lower risk areas could see benefit, selling for higher prices and being more sought after than before. This could mean new regions seeing a potential spike in homes being purchased from locals as well as people from out of region.
While disaster can strike anywhere and we cannot always be prepared for it, Canadians now more than ever are weighing the risks of where they purchase a home, including climate risks. Overall, the access to information of the modern world continues to allow consumers to make more informed choices on purchases both small and large.