The country’s drought-impacted areas are not deterring buyers. According to Redfin, about three-quarters of U.S. metropolitan areas where more than half of homes experienced intense drought in August have seen more people move in than out in recent months.
An estimated $17 trillion worth of homes in the metros Redfin analyzed experienced intense drought in mid-August 2022, up 42 percent from $12 trillion a year earlier.
Los Angeles, San Jose and New York—three of the most expensive housing markets in the country—were among the metros with the largest number of homes facing intense drought in mid-August.
Dallas, San Antonio and Sacramento, Sun Belt metros were also in the top 10.
“Many people take climate risk into consideration when deciding where to live, but other factors, like affordability, often take precedence given that rent costs are rising and monthly mortgage payments for homebuyers are up nearly 40 percent from a year ago,” said Redfin Economist Sebastian Sandoval-Olascoaga. “Drought may also not be scaring people off to the same extent as fires or flooding, which can physically decimate homes. Still, homeowners and buyers should be aware that drought danger could ultimately dent their home’s value if a lack of water forces residents to leave en masse.”
The 50 U.S. counties with the largest share of homes facing high drought risk saw their populations increase by an average of 3.5 percent during that period due to positive net migration.