Homes in flood zones are collectively worth $42.2 billion less than they would be without the risk, the Climate Council and property data group PropTrack have found.

More than 2 million property owners are affected, with the median at-risk three-bedroom home worth about $75,500 less than an equivalent property with no flood danger.  

Since 2000, there has been a 22% price growth gap between flood-risk homes and those without the threat, and a disproportionate number of at-risk properties are in Queensland and NSW.  

In Queensland, 803,289 homes have lost a combine $19.2 billion in value. Gold Coast alone has suffered a $4.5 billion reduction.  

In NSW, 603,817 properties have dropped $14.2 billion, while Victoria has 255,704 homes that have lost $5.6 billion in value.

The findings also show the impact of perceived vulnerabilities: Queensland’s Mermaid Beach has experienced a 48% reduction in value even though only 16% of houses there are in flood zones.  

Climate Council economist Nicki Hutley says homeowners are “increasingly being dealt a losing hand when it comes to worsening climate risks.

“Even high-value areas and prestigious inner-city or coastal communities can experience losses of more than $500,000 per flood-prone home compared to nearby properties not at risk.

“Flood risk is also deepening economic inequality, with some of the largest drops in value concentrated in lower-income areas, and we can expect this to get worse unless we make deep cuts to climate pollution this decade.”  

See the findings here.