{"id":169231,"date":"2024-03-10T19:53:20","date_gmt":"2024-03-11T01:53:20","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=169231"},"modified":"2024-03-20T01:00:37","modified_gmt":"2024-03-20T07:00:37","slug":"air-quality-should-be-a-factor-into-your-investment-decisions","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions","title":{"rendered":"Air Quality Should Be a Factor In Your Next Investment Decision\u2014You Might Be Surprised Why"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC4664389857\" width=\"100%\"><\/iframe>\r\n\r\n  \n\n\n\n\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&nbsp;<\/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\">&nbsp;are 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.&nbsp;<\/span><\/p>\n\n\n\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&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/firststreet.org\/research-library\/atrocious-air\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">recent research<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;from 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.&nbsp;<\/span><\/p>\n\n\n\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.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Climate Change vs. Costs of Living<\/span><\/h2>\n\n\n\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&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/wildfire-risk-migration-air-factor\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Redfin report<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;suggests 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.&nbsp;<\/span><\/p>\n\n\n\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&nbsp;<\/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\">&nbsp;have reshaped the real estate landscape there, with many areas recording population losses.<\/span><\/p>\n\n\n\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&nbsp;<\/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\">&nbsp;concerns. 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\n\n\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&nbsp;<\/span><\/p>\n\n\n\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.&nbsp;<\/span><\/p>\n\n\n\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\n\n\n<p><span data-preserver-spaces=\"true\">Two main concerns dominate sellers\u2019 decisions to move, according to Pitchon-Getzels: basic safety and&nbsp;<\/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\n\n\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\n\n\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&nbsp;<\/span><\/p>\n\n\n\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\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What You Should Prioritize as a Real Estate Investor<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you are an investor in the West, you will need to do meticulous&nbsp;<\/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\">&nbsp;into 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&#8217;t mean it won\u2019t be affected next year. Insurance companies know this.<\/span><\/p>\n\n\n\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.&nbsp;<\/span><\/p>\n\n\n\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.&nbsp;<\/span><\/p>\n\n\n\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\n\n\n<p><span data-preserver-spaces=\"true\">In other words, if an area has exorbitant living costs<\/span><em><span data-preserver-spaces=\"true\">&nbsp;and<\/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\n\n\n    \n  <div id=\"visibility-group-block_789cdaf2119f046e8d42e32e5db48634\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_bbf3ddf6c7605dca1080dceb625429d6\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        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\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_79a7a90440f9fca85405f121d4f4560c class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\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:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\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\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\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\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/air-quality-should-be-a-factor-into-your-investment-decisions&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Poor air quality has been in the headlines about U.S. climate change, especially on the West Coast and in Southern states. Increasingly devastating&nbsp;wildfires&nbsp;are becoming a sad fact of life in [&hellip;]<\/p>\n","protected":false},"author":613618,"featured_media":169234,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119],"tags":[],"class_list":["post-169231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/169231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613618"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=169231"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/169231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/169234"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=169231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=169231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=169231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}