Environmental Hazards Don’t Quell Price Hikes

February 22, 2018

Home prices in ZIP codes with the highest environmental hazard risk are appreciating at a faster pace than the overall housing market in the past year and over the last decade, according to ATTOM Data Solutions’ 2017 Environmental Hazards Housing Risk Index.

Researchers analyzed more than 8,600 ZIP codes in the U.S. looking for four environmental risks: Superfund sites, brownfields, polluters, and poor air quality. They found that median home prices in ZIP codes in the top environmental hazard risk category rose 7.4 percent from a year ago on average, compared to a 7.1 percent increase nationwide. From 2007, these high-risk areas have seen prices increase 22.2 percent from a decade ago compared to a 12.3 percent increase nationwide.

“With housing inventory in short supply, even homes in higher-risk ZIP codes for environmental hazards are in high demand from buyers looking for lower-priced properties and investors looking for the next up-and-coming neighborhood,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “Buyer demand does seem to have a bit of a limit when it comes to environmental hazards, however. Homes in ZIP codes with Superfund sites on the EPA’s national priority list have seen weaker home price appreciation and have higher foreclosure rates than the overall housing market.”

View the following chart for the 10 ZIP codes with the highest total environmental hazard risk in 2017, according to ATTOM Data Solutions.

 

 

Source: ATTOM Data Solutions