THE ROAD AHEAD: FACING A NEW CLIMATE REALITY
REAL ESTATE MARKET FACES NEW CLIMATE REALITY
More frequent and extreme weather events are adding complexity and nuance to home-purchasing decisions across the globe—and luxury buyers and sellers are taking note.
“Beyond typical inspections, many buyers are asking more detailed questions about defensible space, brush clearance, fire-resistant building materials, insurance, and community evacuation plans,” says The Agency’s CEO and Founder Mauricio Umansky.
Umansky is referring specifically to areas such as Southern California, the Pacific Northwest, the Mountain West, and Western Canada, where intense wildfire and smoke events are becoming almost-annual occurrences. A changing climate is also increasing the severity of all kinds of weather, from tornado season in the Midwest to storm surge in Florida and hurricanes in the Caribbean.
Chris Resop, Managing Partner of The Agency Naples, notes that as of October 2024, Florida state law requires all homeowners to provide a flood disclosure in advance of a sale, detailing if the home had ever endured flood damage or applied for federal assistance as a result of flooding.
He adds that in light of increasing rains and encroaching shorelines, most new homes and renovations are built higher off the ground, and builders finish areas like garages in full tile so they have a better chance of withstanding water damage.
New to the area are installed “flood planks” that provide a two-to-four-foot, ground-bolted wall that provides an extra barrier against rising water. According to Resop, those with the resources to install them will do so at every open point—door entries, screen doors, and more. “It’s as close of a guarantee (for water protection) as you can find,” he says.
When Hurricane Dorian ripped through the Abacos Islands in 2019, it marked a turning point when landowners began revising their ideas of the type of structures required to withstand major hurricanes. Concrete and steel are still the most common materials used, but in different applications, such as block and freeform slabs.
“The country didn’t redo the building code, but folks were more engaged before they started building, asking if their home could withstand winds of more than 200 miles per hour,” says Danny Lowe, Managing Partner of The Agency The Bahamas.
Dorian hasn’t deterred would-be buyers from looking at beachfront and waterfront properties, but Lowe says they’re much savvier now than they used to be, looking at the details and resilience of a home more before purchasing. “Folks are just saying, ‘well, I have to build a stronger house,’” he adds.
The fierce winds of tornadoes are nothing new in Oklahoma, but some luxury home buyers are doubling down and looking for peace of mind in light of increasing climate-related and geopolitical issues. This kind of thinking has led to the creation of a self-sustaining community, Hollow Point Ranch.
“This is a first for me and a first for Oklahoma,” says Wyatt Poindexter, Managing Partner of The Agency Oklahoma City, who is representing the purpose-built planned community situated between Oklahoma City and Dallas. Initially, there will be 50 homesites for sale, with plans that include prepared and bespoke shelter and bunker options. The community will be built with natural disaster resilience in mind, having its own water and electricity sources so it can run primarily off-grid should the need arise. (A small section of home construction is already under way with a larger allotment of lots expected to be released in early 2026.)
Outside these communities, others are fortifying their existing homes or adding suitable storm shelters, which can hold as few as a family of four or up to 10 people.
Poindexter says that while underground shelters have largely been the norm for Oklahomans, new transplants, especially those from California, prefer to have shelters built above ground.
What’s clear is that, across the board, luxury homeowners are not being deterred from building or owning in a specific area, but rather are factoring in the cost of a rebuild should their home or property be damaged or destroyed. Gone are the days of relying on insurance or navigating government processes to aid financially or logistically with rebuilding.
“We have people here that are self-insured and are putting away $30,000 to $40,000 each year so they can pay for a rebuild themselves,” Resop says.
