When climate meets real estate: A survey of the literature

Abstract

With near unanimity, climate scientists project natural disasters to increase in frequency, severity, and geographic scope over the next century. We survey academic literature at the intersection of these climate risks and real estate. Our review of physical risks includes price, loan performance, and migratory effects stemming from flooding, wildfires, and sea level rise. We review transition risks, including energy use and decarbonization, as they relate to real estate. Where possible, we explain how these topics may intersect with housing affordability, especially in historically disadvantaged communities. We conclude by highlighting critical areas for future research.