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Flood-Prone Homes Lose $75,000 in Value Amid Climate Risks
21 Oct
Summary
- 70% of 2M flood-prone homes have reduced values
- Flood-prone areas see $75,000 less for 3-bed, 2-bath homes
- Low-income families disproportionately affected by climate risks

As of October 2025, a new report by the Climate Council and PropTrack has found that the flood-prone housing crisis in Australia is worsening. Of the 2 million homes across the country at risk of flooding, at least 70% have had their values reduced due to the growing climate threat.
The report shows that the median value of a 3-bedroom, 2-bathroom home in a flood-prone area is now $75,000 less than a similar property without flood risks. This widening gap is hitting low-income families the hardest, with over half of flood-prone properties owned or rented by those on limited means. Experts warn that the situation is "exacerbating intergenerational inequality" as climate change impacts intensify.
Suburbs like Chelmer in Brisbane, which saw a 10.6% value loss averaging $303,000 per home, are examples of the stark repricing occurring in high-value, flood-exposed areas. Authorities are struggling to keep up, with some councils even ignoring flood mapping to enable further development in vulnerable regions. Experts argue that robust adaptation plans and political courage are needed to protect vulnerable communities from the escalating costs of the climate crisis.