Are Low-Risk States the Future of Safe Property Investments?

The New Geography of Property Ownership

For many Americans, homeownership is more than a financial milestone—it’s a deeply personal achievement tied to safety, stability, and legacy. However, climate change is increasing the frequency and intensity of natural disasters nationwide. As a result, many homeowners are questioning the long-term viability of their investments. A recent U.S. News and World Report survey found that “35% of homeowners have considered moving to a state with a lower natural disaster risk.” As a result, states traditionally overlooked in the real estate spotlight are now emerging as safe property investment state options. Let’s explore why and how this new geography of homeownership is taking shape.

Why Climate Is Reshaping Real Estate Priorities

Climate change has introduced a new variable to real estate decisions. According to the Intergovernmental Panel on Climate Change (IPCC), global temperatures have risen by about 1.1C since the late 19th century, intensifying extreme weather events like hurricanes, floods, and droughts. Property owners in vulnerable states are not only seeing more severe weather but also feeling the ripple effects through increased insurance premiums, restrictive policies, and reduced property values.

In response, states with fewer climate risks—such as Ohio, Minnesota, and Pennsylvania—are becoming increasingly attractive to climate-conscious buyers. This trend reflects a re-prioritization where personal safety and financial stability outweigh traditional factors like job markets and amenities. In response to this shift in priorities, Zillow has added climate risk data to their property listings to help buyers make informed decisions. According to a Zillow® Analysis of new listings from August 2024, a growing number of homes listed for sale in the U.S. are now linked to major climate risks compared to five years ago. “The analysis found that 16.7% of new listings were at major risk of wildfire, while 12.8% came with a major risk of flooding,” Zillow reports.

Climate-Safe States: Where Property Owners Are Looking Now

While no location is entirely immune to climate risks, certain states are statistically safer from the most devastating natural disasters. For example: 

• • • Ohio and Michigan: While they still experience seasonal weather, these states are generally less prone to catastrophic hurricanes, wildfires, or earthquakes.
    • Minnesota and Wisconsin: Known for their stable climates and robust local economies, these states are garnering interest for their relative safety and strong communities.
    • New Hampshire and Vermont: These Northeastern states are insulated from the frequency of severe storms seen along the Southern coasts, appealing to those looking for a quiet and hopefully safer environment.

The Financial Incentives of Low-Risk States

Safe property investment states offer not only lower risk of disaster but also provide economic benefits that make them more attractive for long-term investments:

1. Lower Property Insurance Premiums

According to Bankrate, property owners’ insurance premiums have surged nearly 40% nationwide over the past decade, with high-risk states bearing the brunt. In contrast, premiums in generally safer property investment states tend to be more affordable and stable, reducing the financial burden on property owners.

2. Stable Property Values

Recent research from Zillow indicates that property values in regions with lower climate risks have remained stable or even appreciated as buyers seek out these areas as safer long-term investments. Properties in high-risk zones, conversely, may struggle to retain value over time due to increased insurance costs and higher buyer scrutiny.

3. Increasing Government Interest

As more states and municipalities recognize the risks of climate change, there’s growing support for community resilience programs. These initiatives often include eco-friendly building codes, improved infrastructure, and sustainable housing projects. While some regions less vulnerable to extreme weather are enhancing their resilience to maintain their appeal, many vulnerable areas are also adopting proactive measures. For example, coastal states are strengthening building codes to withstand hurricanes, and wildfire-prone regions are implementing stricter land-use regulations and fire-resistant construction materials.

Weather Is Shaping Tomorrow’s Real Estate Market

The concept of safe property investment states is no longer niche; it’s quickly gaining mainstream attention as buyers, developers, and policymakers look for sustainable solutions to our planet’s warming future. Already, property developers are marketing homes and communities with climate resilience as a selling point. This trend indicates a shift toward responsible, forward-thinking investments that prioritize both personal safety and environmental adaptation.

For property owners and prospective buyers, this “new geography” of real estate is redefining what it means to find a ‘safe” investment. It’s not just about market performance or neighborhood reputation—it’s about building security in an era of unpredictability.

Navigating the New Map of Safe Investments

Relocating to a low-risk state isn’t a one-size-fits-all solution. For those considering it, careful planning, market research, and understanding the climate outlook are essential steps. As the real estate landscape continues to transform, staying informed and adaptable will be key for buyers looking to secure their homes and investments for the long haul.

Protect Your Property, No Matter the Climate

Whether you’re in a high-risk state or a “climate-safe” haven, your property and insurance policy can be ready for anything. That’s where a public adjuster, like those at Premier Claims, comes in.

• Review Your Coverage: Insurance policies can have surprising gaps in coverage. Our team is here to review your policy and help you make sure your property is protected before disaster strikes. We want to make the most of your coverage!
• Plan for the Future: Climate risks are ever-evolving, but proactive guidance from a public adjuster can help you prepare your property and your policy for the long haul.

Having a public adjuster on your side means turning uncertainty into confidence—no matter what challenges come your way.

Take control of your future today and connect with our team!