Why The Wealthy Aren’t Concerned About Disasters

Money can buy lots of great things—happiness, sports teams, the McRib—and it can apparently also get you peace of mind when it comes to owning property in environmental danger zones.

Extreme heat, rising sea levels, and unpredictable weather are causing extensive property damage in the US, but wealthy Americans remain undeterred in snapping up houses in at-risk areas. The reasons why may not be complicated: Oceanfronts, mountains, deserts, and other places particularly affected by climate change have always been popular destinations for the rich—and the risks do not outweigh the status these locales confer.

And any damage to the homes of the ultrawealthy likely doesn’t hit them as hard as it would someone with fewer assets:

• The Wall Street Journal reported that Oracle co-founder Larry Ellison lost a home in the Los Angeles wildfires that Zillow had valued at $21.5 million.
• While that’s a painful experience for anyone, it’s about 0.01% of his $216 billion net worth, equivalent to having $500 and losing a nickel in your couch cushions.

As for the merely wealthy, they don’t have that luxury, but they do have others. They can build homes that are more likely to survive thanks to pricey options that include fireproof materials, private firefighting outfits, and homes on stilts that others can’t afford.

This is a problem for everyone: Realtor.com reported that 44.8% of homes with a combined value of $22 trillion are located in an area at risk for at least one potential climate catastrophe, making it difficult to avoid completely. Less vulnerable properties are rising in cost—the total value of US homes in low-risk areas was up between 6% and 7% year over year in 2024.—DL