Today, the Climate Council, in collaboration with property analytics company PropTrack, unveiled a comprehensive study examining millions of properties over the last 20 years.

Despite the surge in housing and apartment prices nationwide, the report highlights a significant depreciation in the value of properties situated in flood-prone regions, amounting to a collective loss of $42.2 billion by this past April, attributed to the increasing threat of flooding.

“Our homes, often our most valuable possessions, are increasingly vulnerable to escalating climate-related threats,” stated Nicki Hutley, a Climate Councillor and economist.

The analysis reveals that out of the over two million homes at risk of flooding, at least 70 percent have seen a decline in value due to this hazard.

Queensland and NSW were the most-impacted states, losing $19.2 billion and $14.2 billion in property value respectively, followed by Victoria at $5.6 billion.

All three have been hit by severe, repeated flooding in recent years, including in western Queensland earlier this year, Northern Victoria and the Maribyrnong River catchment in October 2022, and NSW’s Northern Rivers region repeatedly since late 2020.

Unsurprisingly, the NSW town of Lismore, which has been hit by several major floods this decade, was one of the worst-affected areas.

Houses there have dropped in value by an average of $112,000, or 8 per cent, according to the report, which also found traditionally blue-chip suburbs have been impacted.

“Even high-value areas and prestigious inner city or coastal communities can experience losses of more than half a million dollars per flood-prone home compared to nearby properties not at risk,” Hutley said. 

“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.”

That figure would then increase to $611 billion by 2050, and $770 billion by the end of the century, the risk assessment concluded.

“Last month, the… National Climate Risk Assessment warned us that Australia would face increasingly frequent and severe climate impacts in the future if climate pollution isn’t cut deeper and faster,” Climate Council chief executive Amanda McKenzie said. 

“This new report shows over a million Australian households are already losing out, as those living in flood-prone communities in Lismore, Taree, Townsville and the Hawkesbury sadly know too well. 

“Climate pollution is supercharging flood disasters, and we can see that’s dampening the value of flood-prone homes today. 

“But it also costs everyone in rising repair costs, recovery costs and insurance premiums. 

“The Australian government must regulate large, polluting projects and stop new ones that are only making this situation worse by overhauling our national environment laws so coal and gas projects stop being waved through.”