What’s Happening?
A joint report by PropTrack and the Climate Council has revealed that worsening climate-driven floods are wiping out more than $42.2 billion in Australian home values. The report found that homes in flood-prone areas are collectively worth significantly less, with Queensland among the hardest hit.
Townsville, listed alongside other flood-affected regions such as Lismore and Ballina, is experiencing a marked decline in property values due to rising flood risks.
Why It Matters
The findings highlight how climate pollution is directly impacting the nation’s most valuable asset—housing. Homeowners in flood-prone areas are facing a “disaster penalty” averaging $75,000 for a typical three-bedroom home.
Climate Councillor and economist Nicki Hutley said worsening floods were eroding wealth and deepening inequality.
“Our homes are our most prized assets but we’re increasingly being dealt a losing hand when it comes to worsening climate risks,” Ms Hutley said. “Even high-value or inner-city properties can lose more than half a million dollars due to flood exposure.”
Local Impact
Townsville’s flood-prone areas, including Townsville City and North Ward, recorded one of the highest losses for units nationwide. Values there dropped an average of 8.1%, or about $69,000 per property. Climate Council CEO Amanda McKenzie said the issue is already hitting households hard.
“Over a million Australian households are losing out, as those living in flood-prone communities in Lismore, Taree, Townsville and the Hawkesbury sadly know too well,” she said. “Climate pollution is supercharging flood disasters… and we can see that’s dampening the value of flood-prone homes today.”
She called for stronger national laws to curb emissions and stop new coal and gas projects.
By the Numbers
• The total national loss in property values caused by flood risk is estimated at $42.2 billion, according to PropTrack and the Climate Council.
• In Queensland, the loss reaches $19.2 billion, the highest of any state, affecting more than 803,000 properties.
• In Townsville City–North Ward, property values have fallen by an average of 8.1%, equal to about $69,000 per unit.
Zoom In
The study found that even as overall property prices rise, flood-prone properties start from a lower base and grow more slowly. This trend is particularly visible in Queensland’s coastal and northern regions where extreme weather events are becoming more frequent.
Zoom Out
Australia’s National Climate Risk Assessment, released last month, warned that without faster cuts to climate pollution, severe weather impacts will worsen. The PropTrack–Climate Council findings now provide clear financial evidence of the cost of inaction.
What to Look for Next
Experts expect insurers and lenders to increasingly factor flood exposure into premiums and loan decisions. Policymakers are also under pressure to implement stronger emission reduction targets and climate-adaptive planning, especially in flood-prone cities like Townsville.
