Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 474

This is a fascinating little experiment:

From Oct. 12, 2020 to Jan. 3, 2021, Redfin ran an experiment on 17.5 million of its users across the US. As prospective homebuyers entered the site, Redfin assigned them randomly to either a group that was shown flood-risk information on each property or a group that was not.

The flood-risk scores came from First Street Foundation, a climate and technology nonprofit that works to make climate hazards more transparent to the public. In June 2020, First Street published  the first public maps  that revealed flood risk for every home and property in the contiguous US. 

First Street scores properties on a scale of 1 to 10 based on the likelihood that they will flood in the next 30 years (which is assumed to be a typical mortgage term). A score of 1 means the property has "minimal" risk and a score between 9-10 is considered "extreme" risk.

So what happens once you start showing people flood-risk information? They, not surprisingly, start systematically looking for safer properties. After one week of users being exposed to this new information, prospective buyers who were previously looking at "extreme" homes started looking at homes that were about 7% safer.

After 9 weeks, these same "extreme" home buyers were looking at properties that were about 25% less risky. And for some buyers, in particular those working with a Redfin agent or partner, their flood-risk tolerance dropped by over 50%. (Embedded in this data might be a sales pitch for working with a knowledgeable Redfin agent or partner).

Also interesting is the fact that below "severe" flood risk (a score between 7-8), there was very little change in behavior. "Major" flood risk, it would seem, isn't all that concerning to most buyers. It needs to be "severe". Nevertheless, it is noteworthy that people will in fact make behavioral changes when presented with clear climate-risk data.

I recently collected two NFTs from aerial photographer Vitor Esteves . I purchased one of Menton, France and one of Las Negras, Spain (pictured above). Both are from his 1/1 Coastline Villages collection on Sloika . I know that NFTs aren't nearly as popular as they were last year, but that is exactly why now is a great time to be collecting. Talented artists continue to create, but ETH gas fees have come way down (a few dollars versus sometimes over a hundred at the peak) and there is now far less competition out there. It is no different than trying to buy great real estate when the rest of the market is sleeping.

At some point, I'm going to need to pull the trigger on a good NFT display. I've been contemplating a Tokenframe , but I also think that most TVs are going to appropriate this function pretty soon. Some already have.

I spent this morning filming a new short video for Junction House . My friends Adriana and Mateusz live in a beautiful boutique condominium building downtown. They are also raising their young daughter there, and using it as an office and design studio (he's an architect). This is a story that we are looking to tell in a new campaign that we'll be launching this fall, and so I very much appreciate them volunteering their time.

We talk about this a lot on the blog, but there are deep cultural biases in Toronto (and throughout North America) around single-family housing. But that is changing. For a variety of reasons, more and more people are choosing to live in multi-family buildings and to raise families within them . We believe that there are many benefits to this lifestyle choice, and that it is ultimately a positive thing for our cities. So that's what we were discussing this morning.

Thank you both for your time, and thank you to Studio Haus for figuring out how to get the lighting right in a corner suite with copious amounts of natural light.