Extreme Weather Events Influence Home-Buying Decisions
In the report of BMO it was found that climate-related factors such as wildfires, floods, heat waves and hurricanes affect where Canadians plan to live in the next five years Data shows that 39% of Canadians would consider those factors of this environment when deciding on their future housing.
Younger Generations Most Concerned
The effects of climate change on housing preferences are more pronounced among most of the younger Canadians. According to the report, 49% of millennials (born between 1981 and 1996) and 54% of Gen Z Canadians (born between 1997 and 2012) will factor in climate-related risks when choosing where to live.
Recent Climate Events Drive Awareness
Alex Cool-Fergus, the national policy manager at Climate Action Network Canada, expressed that the findings are unsurprising given the recent climate events that have hit home for many Canadians. Increased frequency and intensity of extreme weather events have heightened public awareness of the far-reaching impacts of the climate crisis.
Costly Consequences of Extreme Weather
The report of Insurance Bureau of Canada has signified 10% of Canadian households are at high risk of flooding but do not have flood insurance. The cost of disastrous weather in residences was increased since 2008. And now routinely results in more than $2 billion in insured losses annually, mostly due to water damage.
Impacts on Property Values and Sales
A report from the Intact Center for Climate Adaptation highlights the negative impact of flood damage on the housing market. This included an 8.2% decrease in average final home sales prices, a 44.3% decrease in the number of homes listed for sale and a 19.8% increase in the number of days on market to sell homes.
Mitigating Climate Risks for Homeowners
The Intact Center has represented infographics indicating the steps homeowners can take to protect their homes from wildfires, heat waves, floods, and other extreme weather events. These measures range from maintaining climate-adaptable homes to installing flood-resistant building materials.
Insurance Coverage and Climate Adaptation
Harris, an expert in the field, emphasized the importance of homeowners understanding their insurance coverage and its limitations. Renters in flood or wildfire-prone areas also need to have appropriate coverage, as they may be unable to purchase insurance once an extreme event is imminent.
Government Initiatives and Local Efforts
The Insurance Bureau of Canada is collaborating with the federal government on a National Flood Plan to be introduced in the coming years. The Canadian Climate Institute estimates that every dollar invested in climate adaptation today could yield future savings of $13 to $15.
While difficult conversations about relocation may be necessary in some communities, encouraging change is occurring at the municipal level. Cities like Montreal and Fredericton are adapting their infrastructure and investing in green spaces and natural climate solutions.
Adapting to a Changing Climate
As the climate crisis continues to impact various aspects of life, including housing, Canadians are becoming increasingly aware of the need to adapt and mitigate risks. The BMO report underscores the growing influence of climate-related factors on home-buying decisions, particularly among younger generations. Addressing these challenges will require a combination of individual preparedness, government initiatives, and local efforts to build resilient communities and infrastructure.
