How is climate change reshaping the real estate landscape? This research provides a comprehensive survey of academic literature exploring the intersection of climate risks and real estate. By examining the impact of physical risks such as flooding, wildfires, and sea-level rise, along with transition risks like energy use and decarbonization, this study uncovers critical insights for investors, policymakers, and communities. The review encompasses a wide range of effects, including price fluctuations, loan performance, and migratory patterns driven by climate-related disasters. Transition risks, particularly concerning energy use and decarbonization, are analyzed in relation to their effects on real estate value and investment decisions. The authors also address the critical intersection of these climate risks with housing affordability, with a focus on historically disadvantaged communities. This survey not only synthesizes existing research but also highlights crucial areas for future investigation. By providing a clear understanding of the current state of knowledge, this review serves as a valuable resource for academics, practitioners, and policymakers seeking to address the challenges and opportunities at the intersection of climate change and real estate.
Published in Real Estate Economics, this survey directly aligns with the journal's focus on the economic analysis of real estate markets. By examining the influence of climate change on property values, investment decisions, and housing affordability, this paper contributes to the journal's core themes. The paper's extensive review of relevant literature and identification of future research directions further enhance its significance within the journal's scope.