Flood exposure is having a measurable impact on Australian home values, with new national data showing flood-prone properties are collectively worth $42.2 billion less than similar homes without risk.
The findings, released in the PropTrack Climate Council Property Value Flood Risk Report, mark the first Australia-wide evidence-based analysis of how flood risk is influencing property prices.
The report combines historic hazard data from Geoscape Planning and Insights with PropTrack’s real estate data to quantify the financial effects of flood exposure on residential housing.
According to the report, one in six homes, which is more than two million properties, face some level of flood risk.
In areas where that risk reduces values, a typical three-bedroom, two-bathroom house at risk of flooding sold for $75,500 less than an equivalent property without flood risk in the year to April 2025, an 8.5 per cent gap.
PropTrack Senior Economist Eleanor Creagh said the analysis reveals the financial reality of flood risk already being felt in Australia’s housing market.
“We’re seeing evidence that properties at risk of flooding experience value reductions and, in some regions, slower price growth over time,” Ms Creagh said.
“This analysis is the first national-scale evidence of the current impact of flood risk on Australian residential property values… Unlike the Australian Government’s National Climate Risk Assessment, which forecasted potential value losses by 2050, this analysis identifies the realised impact of flood risk on property values today.”
Queensland and New South Wales account for the largest share of flood-prone homes, representing 40 per cent and 30 per cent of exposed properties respectively.
In Queensland alone, the value gap from flood risk exceeds $19 billion, followed by more than $14 billion in New South Wales.
The Richmond–Tweed, Cairns, and Brisbane–West and Inner City regions recorded the greatest losses as a share of market value.
Ms Creagh said climate-related risks are now becoming an unavoidable factor in property decision-making.
“Assessing potential risks and hazards, such as flooding, is becoming an increasingly critical step at many stages of the property journey,” she said.
“Just as location has always underpinned property value, we now need to think about climate location.”
From 2010 to 2025, homes exposed to flood risk in some areas underperformed by as much as 48 percentage points compared to those without risk.
While the total reduction in national housing value represents just 0.4 per cent of total residential stock, the report notes the impact is highly concentrated, leaving some regions to bear a disproportionate share of the financial loss.
Ms Creagh warned that as extreme weather events become more frequent and severe, the link between climate risk and housing value will only strengthen.
“Understanding the evolving relationship between climate risk and property value is essential to support a more resilient housing market and safeguard financial stability,” she said.
