A review of 130 studies reveals that climate risks, particularly flooding, significantly impact real estate values.

The research predominantly focuses on flood-related physical risks in the US housing market and single-family homes. This concentration leaves a critical gap in understanding how transition risks and compound risks affect property values across different markets.

Floods can drastically reduce home prices, making it harder for homeowners to sell or refinance their properties.

The long-term vulnerability of real estate to climate change is evident, with potential future impacts from rising sea levels and more intense storms likely to exacerbate these issues.

What are the immediate real estate and economic risks?

Homeowners in flood-prone areas face significant financial risks as property values drop. Investors must consider climate risk when valuing properties, especially in regions with high exposure to flooding.

The outlook is negative for flood-exposed real estate.