The fate of home prices in areas likely to be affected by climate change could come down to how many locals actually believe in climate change.
The fate of home prices in real-estate markets that have a high risk of being affected by climate change could come down to how many local residents actually believe in climate change.
Having a higher concentration of people who deny climate change will cause home prices to be higher in at-risk areas, the study found. Homes that are projected to be underwater due to climate change sold for 7% more in “denier” neighborhoods as compared with “believer” neighborhoods.
The researchers also examined whether political affiliation played a role, but found that the effects persisted even when accounting for people’s political parties. The researchers also cautioned that it’s possible that climate-change believers are over-reacting to the threats of global warming — and pushing prices downward — rather than deniers under-reacting.
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