'Denier' neighborhoods vs. 'Believer' neighborhoods
A new study from researchers at the University of British Columbia’s Sauder School of Business in Canada examined the role climate change denial plays in the pricing of these homes.
Having a higher concentration of people who deny climate change will cause home prices to be higher in at-risk areas, the study found. Homes that are projected to be underwater due to climate change sold for 7% more in “denier” neighborhoods as compared with “believer” neighborhoods. Denier neighborhoods are those in which the share of people who believed in climate change was below the national median, using the data from the Yale Program on Climate Change Communication, whereas people in believer neighborhoods were more likely to think that global warming is happening.
“If everyone were to say, ‘I’m not buying beachfront property here because it’s going to get flooded,’ then prices would collapse,” UBC Sauder School of Business assistant professor and study co-author Markus Baldauf said. “But if you don’t believe in climate change, you might say, ‘You guys are crazy. Climate change isn’t a real thing, so I see a buying opportunity.’”
CNBC: "Extreme weather such as hurricanes, flooding, freezing temperatures and wildfires has prompted some to rethink where they will spend their golden years...Another client in Austin suffered from the region’s deep freeze and power outages in February. When pipes froze and their condo flooded, they started to question their long-term plans, McGlothlin said.With the possibility of another cold snap, more home damage or future displacement, they are reconsidering where they are living."