A new joint report from property data firm PropTrack and the Climate Council has found climate pollution is driving worsening floods that are today hitting the value of Australians' greatest financial asset: their home.
The report analysed more than two decades of property data and found homes in flood zones are collectively worth about $42 billion less due to the risk of floods, and:
- Homeowners are effectively paying a "disaster penalty" of about $75,000 for a typical 3-bed, 2-bath house. As climate-driven floods become more frequent and severe, more properties could face steeper penalties.
- Households in Queensland and New South Wales are the hardest hit, followed by Victoria.
- Overall rising property prices are masking the fact that flood-prone properties start from a lower value and experience slower growth.
Climate Councillor and economist Nicki Hutley said: "Our homes are our most prized assets but we're increasingly being dealt a losing hand when it comes to worsening climate risks. This study finds of more than two million flood-prone homes, at least 70% are valued lower today due to flood risk.
"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. 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."
Climate Council's CEO Amanda McKenzie said: "Last month the Federal Government's own 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. 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.
| State | Total dollar value forgone, April 2025 | No. of properties |
| Queensland | $19.2 billion | 803,289 |
| New South Wales | $14.2 billion | 603,817 |
| Victoria | $5.6 billion | 255,704 |
| South Australia | $2.1 billion | 159,482 |
| West Australia | $0.9 billion | 149,416 |
| Tasmania | $0.1 billion | 34,777 |
| ACT | $0.1 billion | 2,485 |
Suburbs with the greatest loss in property value
(Ranked by per cent of market value lost)
Houses
| Suburb Name | State | Value Gap | Value Loss | Average Impact |
| Chelmer – Graceville | QLD | $0.65bn | 10.6% | $303,000 |
| Bundaberg North – Gooburrum | QLD | $0.15bn | 9.5% | $59,500 |
| Buddina – Minyama | QLD | $0.55bn | 9.5% | $316,500 |
| Pitt Town - McGraths Hill | NSW | $0.59bn | 8.7% | $363,500 |
| Lismore | NSW | $0.28bn | 8.0% | $112,000 |
| Mermaid Beach – Broadbeach | QLD | $0.50bn | 7.8% | $1,702,000 |
| Johnstone | QLD | $0.12bn | 7.8% | $54,500 |
| Emerald | QLD | $0.17bn | 6.5% | $43,000 |
| Pimpama – South | QLD | $0.15bn | 6.2% | $55,000 |
| Ballina | NSW | $0.38bn | 5.4% | $92,000 |
Units
| Suburb Name | State | Value Gap | Value Loss | Average Impact |
| Westcourt – Bungalow | QLD | $0.19bn | 20.0% | $77,500 |
| Tweed Heads South | NSW | $0.20bn | 8.9% | $65,000 |
| Townsville City - North Ward | QLD | $0.24bn | 8.1% | $69,000 |
| Mona Vale - Warriewood (North) | NSW | $0.38bn | 7.8% | $253,000 |
| Ballina | NSW | $0.30bn | 7.8% | $74,500 |
| Mermaid Waters | QLD | $0.17bn | 6.7% | $62,500 |
| Hamilton | QLD | $0.18bn | 6.6% | $87,500 |
| Mermaid Beach – Broadbeach | QLD | $1.06bn | 6.5% | $283,000 |
| Rosebery – Beaconsfield | NSW | $0.33bn | 5.9% | $73,500 |
| Pottsville | NSW | $0.15bn | 5.9% | $74,000 |
