{"id":11019,"date":"2024-03-11T04:15:13","date_gmt":"2024-03-11T04:15:13","guid":{"rendered":"https:\/\/imsfund.com\/?p=11019"},"modified":"2024-03-11T04:15:13","modified_gmt":"2024-03-11T04:15:13","slug":"air-quality-should-be-a-factor-in-your-next-investment-decision-you-might-be-surprised-why","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2024\/03\/11\/air-quality-should-be-a-factor-in-your-next-investment-decision-you-might-be-surprised-why\/","title":{"rendered":"Air Quality Should Be a Factor In Your Next Investment Decision\u2014You Might Be Surprised Why"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/p>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Poor air quality has been in the headlines about U.S. climate change, especially on the West Coast and in Southern states. Increasingly devastating\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/buying-a-house-in-wildfire-area\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">wildfires<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0are becoming a sad fact of life in California, Texas, and Arizona, with many states added to the list of those impacted or at high risk of fire damage each year.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But one specific wildfire-related factor is affecting the West more than in any other region in the country: smoke pollution. According to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/firststreet.org\/research-library\/atrocious-air\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">recent research<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from First Street Foundation, the West now has nearly double the maroon air days than it did 20 years ago. The maroon classification is the worst air quality grade there is, defined as \u2018\u2018hazardous\u2019\u2019 to the general population by the EPA.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Redfin recently took First Street\u2019s data and combined it with U.S. Census Bureau migration data. The result? A significant overlap between net out-migration data and air pollution data. People are not only actively leaving the same areas that are suffering the most from poor air quality; they\u2019re also actively moving to areas that have good air quality.\u00a0<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Climate Change vs. Costs of Living<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Does this mean that all these homeowners have finally had enough of air hazard warnings and worrying about the long-term implications of particulate matter on their health? Somewhat surprisingly, it appears that this is not the case. If anything, the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/wildfire-risk-migration-air-factor\/\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">Redfin report<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0suggests that people are mostly moving for reasons that have nothing to do with poor air quality. It just so happens that these areas are also increasingly unaffordable.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The West has had consistent trouble with its real estate markets since the beginning of the pandemic. Soaring home prices combined with increased\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">worker mobility<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0have reshaped the real estate landscape there, with many areas recording population losses.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Affordability still trumps concerns about climate for the vast majority of homeowners in this region, as it does elsewhere in the U.S. A Redfin survey from May 2023 showed that just 9% of recent homesellers moved because of\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-895\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">climate change<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0concerns. The majority moved because they wanted more space (31%), proximity to family (24%), or wanting a better deal on a home (20%).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The fact is, however, that in many cases, the increasing unaffordability of homes in California is directly linked to the persistent wildfire hazard. Redfin chief economist Daryl Fairweather says that \u2018\u2018even when homebuyers do consider climate change, poor air quality often isn\u2019t top of mind because it\u2019s not as visibly destructive as hazards like flooding and fires.\u2019\u2019\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That is true, but living in an area heavily affected by wildfire smoke almost certainly means being close enough to the more immediate risk of fire damage to property. And that\u2019s where living costs really begin piling up.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">BiggerPockets spoke to Nathaniel Pitchon-Getzels, a licensed real estate professional with the Compass Group in California. He shared some firsthand experience of why people are selling. The picture that emerges is of a state where wildfires have \u2018\u2018undeniably reshaped the dynamics of buying and selling real estate, particularly in high-fire risk zones.\u2019\u2019<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Two main concerns dominate sellers\u2019 decisions to move, according to Pitchon-Getzels: basic safety and\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/this-is-the-hardest-property-insurance-market-ever-whats-forcing-carriers-to-pull-out-in-droves\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">soaring insurance premiums<\/span><\/a><span data-preserver-spaces=\"true\">. These two factors are hitting the elderly and families especially hard, with many deciding that the \u2018\u2018challenges of securing adequate insurance coverage, which has become both scarcer and pricier in these areas,\u2019\u2019 is not worth it.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One of Pitchon-Getzels\u2019 clients relocated from the coast, citing the increased fire hazard as a primary concern. Another client, \u2018\u2018upon receiving an exorbitant insurance bill, swiftly made the decision to list their property for sale. Despite their fondness for the neighborhood, they were unwilling to bear the burden of heightened costs.\u2019\u2019<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Pitchon-Getzels says buyers thinking of moving to California have the exact same concerns, \u2018\u2018particularly first-time buyers and the elderly are increasingly wary of high fire risk zones and actively steer clear of such areas.\u2019\u2019 However, wealthier buyers have the resources to absorb increased costs and maximize safety via \u2018\u2018<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-fireproof-your-home-from-wildfires\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">advanced fire suppression systems and fire-resistant upgrades<\/span><\/a><span data-preserver-spaces=\"true\">.\u2019\u2019\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to Pitchon-Getzels, for California\u2019s luxury real estate market, the priorities are the same as they have always been: \u2018\u2018lifestyle factors such as scenic views, privacy, and proximity to amenities over the associated costs and risks.\u2019\u2019<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(['r720x90'], '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<a x-show=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.linkURL\" x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions', IabAdad_block_.sponsor, IabAdad_block_.title, IabAdad_block_.id, 'blockAdClicked', 'blockAd', 'postContent')\" target=\"_blank\" x-init=\"&#10;      analytics.track('blockAdLoaded', {&#10;        referrer: 'https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions',&#10;        sponsor: IabAdad_block_.sponsor,&#10;        ad_title: IabAdad_block_.title,&#10;        ad_page_location: 'postContent'&#10;      })&#10;    \" x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions', IabAdad_block_.sponsor, IabAdad_block_.title, IabAdad_block_.id, 'blockAdViewed', 'blockAd', 'postContent')\" rel=\"noopener\"><\/p>\n<div class=\" hidden sm:block\">\n<img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r720x90\" :alt=\"IabAdad_block_.r720x90Alt\"\/>\n<\/div>\n<div class=\"block sm:hidden\">\n<img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\"\/>\n<\/div>\n<p><\/a>\n<\/div>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What You Should Prioritize as a Real Estate Investor<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">If you are an investor in the West, you will need to do meticulous\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-investment-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">research<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0into how climate change is affecting property taxes and insurance premiums in the area you\u2019re thinking of investing in. Just because a location isn\u2019t at the epicenter of recent wildfires doesn\u2019t mean it won\u2019t be affected next year. Insurance companies know this.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Obviously, there won\u2019t be a mass exodus of people from California anytime soon, and people are still actively moving to the area. And if you are investing in a higher-end property, you may be off the hook.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But if you are tackling the affordable segment of the real estate market, you will need to tread carefully. Paying attention to air pollution data, in addition to tracking home and rental prices and insurance costs, is not a bad idea.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As is so often the case with climate change factors, it may be at the back of people\u2019s minds now, but it could become a tipping point for both homeowners and renters when other pressures mount. As Daryl Fairweather points out in the Redfin press release, \u2018\u2018As the dangers of climate change intensify, we will likely see more people factor air quality and other disaster risks into their decisions about where to settle down.\u2019\u2019<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In other words, if an area has exorbitant living costs<\/span><em><span data-preserver-spaces=\"true\">\u00a0and<\/span><\/em><span data-preserver-spaces=\"true\"> people struggle to breathe there on too many days a year, they might just choose to move.<\/span><\/p>\n<div id=\"visibility-group-block_64dd561cede13\" class=\"visibility-group  hidden\">\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n<div class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 lg:w-1\/2 \">\n<main class=\"py-4\"><\/p>\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find an Agent in Minutes<\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Match with an investor-friendly agent who can help you find, analyze, and close your next deal.<\/p>\n<p><\/main>\n<\/div>\n<div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n<img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/bpimg.biggerpockets.com\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png\" alt=\"find an investment-friendly real estate agent\" title=\"Air Quality Should Be a Factor In Your Next Investment Decision\u2014You Might Be Surprised Why 2\"\/>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container\">\n<div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n<div class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 w-full \">\n<main class=\"py-4\"><\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n<p><\/main>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article Poor air quality has been in the headlines about U.S. climate change, especially on the West Coast and in Southern states. Increasingly devastating\u00a0wildfires\u00a0are becoming a sad fact of life in California, Texas, and Arizona, with many states added to the list of those impacted or at high risk of fire damage each [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":11020,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/LA-haze-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-11019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/11019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=11019"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/11019\/revisions"}],"predecessor-version":[{"id":11021,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/11019\/revisions\/11021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/11020"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=11019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=11019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=11019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}