Source: Redfin —
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The typical high-fire-risk home sold for $550,500 in April, while the typical low-risk home sold for $431,300. That’s the biggest premium since at least 2017.
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The median sale price of high-risk homes jumped 52% during the pandemic, while the median sale price of low-risk homes rose 41%.
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High-risk homes sell for more in part because remote work has allowed many Americans to move to suburbs and rural areas, which are often more vulnerable.
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Homes with high fire risk are also selling faster than low-risk homes, but are more likely to experience price cuts once they’re on the market.
The median sale price of U.S. homes with high fire risk was $550,500 in April, compared with $431,300 for homes with low fire risk. In other words, the typical home with high fire risk sold for $119,200 (27.6%) more than the typical home with low fire risk—the largest premium in dollar terms since at least 2017. By comparison, homes with high fire risk sold for just $56,700 more (18.5%) two years earlier.
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Who are the high risk homes using to insure them for fire risk?