Why You Shouldn’t Invest in Real Estate in These 3 Popular Climate Havens

Millions of Americans are moving to — and investing in real estate in — cities exposed to extreme heat, flooding and hurricanes, but relatively few are migrating to “climate havens.” According to Bloomberg , the key is providing these climate havens with adequate resources to receive new arrivals and making relocation a safer choice, but just how affordable are they ?

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These so-called climate havens are protected from extreme heat and weather, and have the carrying capacity for new residents. But instead of moving to these places, such as Duluth, Minnesota and Rochester, New York, Bloomberg pointed out that most “climate migrants” are only relocating to nearby towns, and millions are migrating to the most climate-vulnerable areas of the country, primarily the Sun Belt.

U.S. Census Bureau data shows that 11 out of the 15 fastest-growing cities in the country are in Texas, Florida and Arizona, which are at a higher risk of extreme heat and drought, flooding and hurricanes. Experts also predict that in about 40 years, we should see home insurance and mortgage industries leave risky areas, potentially resulting in a loss of hundreds of billions of dollars in home equity, Bloomberg added. This is already apparent in places like California and Iowa, where the frequency of disasters and the level of damage is increasing home insurance rates and pushing insurers to leave these markets.

So, where are these climate havens largely located? According to Bloomberg, they’re located around the Great Lakes, the northern Great Plans and the Northeast. Many of these areas also have an overall lower cost of living than cities in the Sun Belt. Despite its strong job market, the Sun Belt has become increasingly unaffordable thanks to rising housing prices and skyrocketing insurance costs.

According to national organizations and news media and as reported by The Conversation, these cities are the most cited havens in research: Ann Arbor, Michigan; Duluth, Minnesota; Minneapolis, Minnesota; Buffalo, New York; Burlington, Vermont; Madison, Wisconsin. However, not all of these climate havens are affordable for the average American.

Using cost of living data and home price data from Payscale, the Economic Research Institute and Zillow, here are three popular climate havens where you shouldn’t invest in real estate and three where you should go instead.

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Don’t Invest: Ann Arbor, Michigan

The cost of living in Ann Arbor is 6% more expensive than the national average and 17% more expensive compared to Michigan’s average. Zillow shows that the average home value is $520,575, which is much higher than the U.S. average of $363,438.

Don’t Invest: Madison, Wisconsin

The overall cost of living in Madison, Wisconsin, is 3% higher than the national average. Utility prices are also about 9% higher, and healthcare prices are 24% more costly. Housing prices aren’t much higher, at about $396,432.

Don’t Invest: Burlington, Vermont

Burlington, Vermont, is 24% more expensive than the rest of the country and 19% higher than the state’s average. Home prices are also expensive, averaging $528,388.

Do Invest: Duluth, Minnesota

Duluth has a lower cost of living compared to the national average (8% lower) and the state (2% lower). The average home price is also much lower, hovering around $273,020.

Do Invest: Buffalo, New York

Buffalo’s cost of living is 5% lower than the national average, and prices are generally lower across the board. Residents also pay less for utilities and groceries, but transportation compares to national figures. The average home price in Buffalo is $231,535.

Do Invest: Minneapolis, Minnesota

The cost of living in Minneapolis is only 1% lower than the national average, but residents save the most on housing costs and groceries. The average home value is $327,484, and home prices have only increased by 0.9% over the past year.

This article originally appeared on GOBankingRates.com : Why You Shouldn’t Invest in Real Estate in These 3 Popular Climate Havens