Climate change may lead to a significant decline in real estate values nationwide, with some areas facing as much as a 25% drop in home prices over the next 30 years. However, Wisconsin stands out as one of the least vulnerable states in the country against climate risks, positioning Madison as a top housing market in the US.
A new analysis by First Street, a climate analytics firm, found that real estate values could decline by over $1 trillion by 2055 due to increased insurance costs and population shifts. Regions with high climate risks and insurance premiums are expected to experience significant declines, including Tampa, Florida.
In contrast, Wisconsin’s Dane County is projected to see an estimated 81.6% growth in population, making it one of the most resilient real estate markets. This growth is attributed to the state’s relatively low risk of climate-related disasters and high adaptability to changing environmental conditions.
The analysis highlights two main categories: “climate abandonment” and “risky growth.” Climate abandonment refers to areas where climate risks and insurance premiums are too high, leading to population decline. Risky growth areas experience high climate risks but still attract people due to other social and economic factors.
Wisconsin’s resilience can be attributed to its low carbon emissions and warming trend, which is only 2 degrees Fahrenheit higher than the national average since the 1950s. The state’s wetter summers and colder winters are largely driven by human activities such as burning fossil fuels.
As climate change continues to impact the US housing market, Wisconsin’s relatively stable climate profile makes it an attractive destination for those seeking a more resilient living environment. With its projected population growth and favorable environmental conditions, Madison is poised to become one of the top housing markets in the country over the next three decades.
Source: https://eu.jsonline.com/story/news/local/2025/02/04/how-will-climate-change-affect-real-estate-in-wisconsin/78181785007