Homes With High Fire Risk Sell For Nearly $120,000 More Than Low-Risk Homes As Americans Flock to Fire-Prone Suburbia

Source: Redfin — 

• 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.

• The median sale price of high-risk homes jumped 52% during the pandemic, while the median sale price of low-risk homes rose 41%.

• 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.

• 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.