As potential homebuyers look ahead to the 2026 spring buying season, some are encouraged by the prospect of lower mortgage rates, which could reduce their borrowing costs. But most have more than money on their minds.
Rather than a hyper focus on the cash required for a down payment and closing costs, or the price of a home, today’s buyers are thinking hard about the long-term value of homeownership. They’re considering how long they may stay in their home as homeowners tend to remain in their homes an average of 12 years today compared to 6.5 years in 2006, according to a study by Redfin real estate brokerage.
Big picture, long-term thinking changes priorities for buyers. The majority of homebuyers of all generations are now focused on the total cost of homeownership over their entire residency, which generates a need to understand energy costs, maintenance and resilience.
Green Builder Media’s COGNITION Smart Data found that 73% of baby boomers, 52% of Gen X, 51% of millennials and 57% of Gen Z buyers are more focused on long-term value and operating costs than upfront costs and price per square foot when they buy a home.
While most analysis of monthly housing costs focus on principal, interest, property taxes and homeowners insurance, the expenses that often create affordability challenges for homeowners are utilities and maintenance. Those expenses can be especially high in a home that’s poorly insulated, not well-constructed or has outdated systems and appliances.
Rising homeowner insurance premiums due to increasingly costly climate-related natural disasters add to the cost burdens of homeowners. If a flood, tornado, hurricane, wildfire or other disaster occurs, homeowners too often find themselves unable to find any insurance or to pay excessively high premiums.
To mitigate those expenses, homebuyers are now more closely looking at the sustainability and resilience of properties before making an investment.
Disaster Risk, Affordability, and Home Values
Climate change, which has already increased the cost of homeownership for many people, has begun disrupting traditional migration patterns by reducing the desirability and affordability of various regions, according to The 12th National Risk Assessment Property Prices in Peril from First Street, a nonprofit organization that provides climate risk assessments.
For example, coastal areas are threatened by sea level rise and other areas face increasingly severe natural disasters, floods, drought and extreme temperatures, all of which make these areas less appealing to relocating homebuyers and more costly.
According to the First Street report, “Chronic climate changes create additional financial burdens – from surging utility bills to increased maintenance costs. Ultimately, environmental stressors and associated rising homeownership costs are together reshaping home values.”
Insurance costs as a percentage of mortgage payments more than doubled from 2013 to 2022, rising from 7% to 8% up to more than 20%. First Street estimates that unrestricted risk-based insurance pricing would drive a 29% increase in average insurance premiums by 2055, including an 18% correction for current underpricing and an 11% increase based on growing climate risks.
“By 2055, 70,026 neighborhoods (84% of all census tracts) may experience some form of negative property value impacts from climate risk, totaling $1.47 trillion in net property value losses due to insurance pressures and shifting demand,” according to First Street. “The dynamics between climate risk, the insurance market and consumer perceptions suggest a future where climate considerations become increasingly central to property valuation, with implications for local economic development. Traditional drivers of home values —such as job markets, school quality and amenities—will interact with fundamental questions of long-term location desirability and sustainability in the context of climate change.”
Research by Redfin published in late 2024 showed that for the first time since 2010, the value of homes in areas with low risk of extreme heat, flood or wildfire increased faster than homes in areas at high risk from those three climate impacts.
In addition, Redfin reported in 2025 that more people moved out of flood-prone areas than moved for the first time since 2019. Areas where more people moved out than moved in were found in high flood risk counties in coastal Florida, Texas, New York and Louisiana. On average, high flood risk counties had 29,027 more people move out than in from July 1, 2023, to July 1, 2024. In comparison, low risk counties saw 35,941 more people move in than out during that same period.
Buyer Preferences, Climate Change and the Housing Market
Concern about climate risk has become more widespread and influential on homebuyer decisions, according to research by Clever Offers, a platform for home sellers. More than two-thirds of survey respondents (68%) believe homeownership is riskier now than a decade ago due to climate change and natural disasters. In addition, 69% said they took disaster risk into account when buying a home. The biggest fear for 61% of homeowners: that a natural disaster could destroy their home. Nearly half (46%) worry they may have to relocate due to climate risks.
These concerns shape the way people think about where to buy, what to buy and the features they need and want in their homes. Most of those surveyed by Clever (63%) said they would pay a premium to buy a home in a low-risk area, and 74% said they would pay more for a home that’s protected against local climate threats.
More than one in three non-homeowners (35%) said they have ruled out a place to live due to climate or disaster risks, with 40% saying they ruled out buying in California for this reason, 36% ruling out Florida and 21% ruling out Texas. One big issue is insurance: 79% said they would avoid buying in a high-risk area if insurance was significantly more expensive than in safer areas.
As buyers become more concerned about the potential physical and financial costs of climate risk, they will look for solutions that lead to resilience and a more sustainable, healthier home that provides long term affordability.
Publisher’s Note: This content is made possible by our Today’s Homeowner Campaign Sponsors: Whirlpool Corporation and ProVia. Learn more about building and buying homes that are more affordable and less resource intensive.