Climate Migrations

Another emerging priority for many buyers – especially among younger demographics such as Millennials and Gen-Z – will be finding property in a location that is less affected by climate change and extreme weather.

For example, a 2021 survey conducted by Forbes Home4 found that almost a third of respondents cited worsening weather conditions as a reason to move. Another third of participants also cited “better weather” for their upcoming move or move within the last two years.

In the future, it is expected that increasing numbers of buyers will seek out homes in locations that are less prone to natural disasters, such as hurricanes, wildfires, tornadoes, hail or wind events, or severe winter storms. Out-of-state moves will be particularly driven by buyers willing to trade worries about property damage and rising costs of insurance for places that are perceived to be less exposed to these kinds of disasters.

As a 2020 New York Times article5 proclaimed, “the great climate migration is already here,” and another Times article6 noted, “climate migration will reshape America.” Climate-related moves are only expected to grow, according to anecdotal reports and a growing volume of academic research.7

Puttin G It In Pe R Spective

Known to be cautious and circumspect, the affluent investor will likely be looking for a hedge against an economic downturn while fortifying their financial status in the immediate future. Their search for stability over the remainder of 2022, and possibly into 2023, will likely guarantee them a very comfortable lifestyle even in chaotic times.

Their shift from YOLO attitudes to a more conservative approach opens a unique window of opportunity for modern real estate agents. As clients are drawn to properties or places that bring them long-term financial or physical security, they will also be looking for not just places, but people they can trust. According to our survey, over four in five respondents who have used a real estate agent to assist in purchasing a home in the past will use a real estate agent for their next home. Clearly, trust in real estate agents remains strong. Since the majority of the affluent place a lot of value on their advisors, it is imperative that agents listen to their clients and truly hear their needs in this new era of stability-seeking.

Luxury property buying across the globe is heating up. American affluent buyers are seeing opportunity abroad like never before. International buyers have also come back to the U.S. For many, it’s not just a lifestyle play –but a long-term diversification play.

Restrictions and general caution tied to international travel during the pandemic caused affluent investors to look for luxury home purchases closer to home as opposed to abroad over the last two years.

In the United States, especially, “domestic home buying demand was exceptional and, therefore, boosted home sales nationally,” NAR Chief Economist Lawrence Yun once commented.

Now it appears that the affluent are returning to global property buying with renewed vigor.