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Older Americans are increasingly purchasing homes in areas associated with a high incidence of climate risk compared to younger adults, according to a recent Redfin analysis. This trend highlights a generational divide in how climate risks are factored into homebuying decisions, with older adults prioritizing lifestyle preferences over environmental concerns.

In 2023, nearly 37 percent of homes bought by individuals aged 65 and older were located in areas with a high risk of extreme heat, compared to 32.3 percent of similar homes purchased by those under the age of 35.

Similar trends are evident for flood and fire risks. Among older buyers, 13.3 percent of purchases were in high-risk flood areas, compared to just 9.8 percent for buyers under 35. Additionally, 3.7 percent of homes bought by older Americans were in areas prone to wildfires, while the figure for younger buyers was only 2.6 percent.

Several factors have driven this disparity.

Older adults, particularly retirees, often prioritize sunny or coastal locations when choosing their retirement destinations. Florida, a perennial favorite for retirees, faces threats of hurricanes and rising sea levels, while Arizona, another popular choice, is increasingly impacted by extreme heat.

“Retirees understand the risks of moving to Florida, but many believe the pros still outweigh the cons,” Miami-based Redfin Premier real estate agent Rafael Corrales said. “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.’”

These decisions are often made with limited consideration to flood risks. A mere 31 percent of baby boomers factor in climate change when purchasing homes, compared to 56 percent of millennials and 50 percent of Gen Z buyers.

Younger generations are more likely to prioritize climate safety, likely because they expect to deal with the risks for a longer period of time.

For younger buyers, proximity to urban job centers often takes precedence. Cities such as Boston, Chicago and Minneapolis remain attractive for job opportunities and comparatively low climate risks.

However, the rise of remote work and expansion of Sun Belt metropolitan areas have begun to shift this dynamic, allowing younger buyers the opportunity to consider a broader range of locations.

Economic realities further complicate the picture. Intensifying natural disasters have caused insurance premiums, HOA fees and property taxes to skyrocket in high-risk areas.

According to Corrales, buyers are increasingly asking sellers about insurance costs and requesting contact information for favorable brokers to gain negotiating leverage.

The analysis also examined geographic distributions of climate risks by age group. In counties where older buyers took out the largest share of mortgages, 96.2 percent of homes face high heat risk, 24.6 percent face high flood risk and 35.7 percent face high fire risk.

By contrast, in counties where buyers under 35 dominated, 59.2 percent face heat risk, 16 percent faced flood risk and 19 percent face fire risk.

The findings are based on Redfin’s analysis of climate risk data from First Street, and Home Mortgage Disclosure Act (HMDA) data covering mortgage originations for primary homes.

Email Richelle Hammiel