Different states and counties across the US are rated with classifications such as very high, high, medium, low and very low "Risks" of being hit by a natural disaster such as hurricanes, tornados, or earthquakes. With over half of the homes in the US located in a "very high risk" to "high risk" areas there seems to be no change in the pricing or appreciation in the most populous areas. This is according to reports done by Realty Trac.
“The higher median home prices in many counties with a high risk for natural disaster indicates that other location-based factors such as weather and access to jobs override concerns about home damage as a result of earthquakes, tornadoes and hurricanes,” said Daren Blomquist, vice president at RealtyTrac, in a statement.
Only 34 counties contained more than 500,000 homes. Of those counties, none fell into the very high risk category, 13 were considered high risk, 13 were medium risk, seven were low risk, and one was very low risk.
The high-risk counties include Kings, New York, Queens, Bronx and Suffolk counties in the New York City area; San Diego and Riverside counties in Southern California; Wayne County in the Detroit metro area; Philadelphia County; and Middlesex County in the Boston metro.
Among those 34 most housing-rich counties, the average median sales price was $268,470 in April, 56 percent higher than the national median of $172,000, RealtyTrac said. The median price in the high-risk counties averaged $377,483 compared with $161,000 in the low-risk or very low-risk counties.
“The potential risk of a natural disaster may not be the first item on most homebuyer checklists for a dream home, but prudent buyers will certainly take this into consideration along with myriad other factors that could affect home value,” Blomquist said.
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