This leads to a slow or stagnant increase in property prices and rents in established areas as people move further out and rent or buy newer homes.Natural disaster risk - Natural disasters such as tornadoes, hurricanes, and earthquakes destroy communities.

Im pretty sure they will make it something like a $25-$45 or higher second assessment on top of the current HOA cost until the assessment of $23K is paid off.I saw this after the 1994 Northridge earthquake on one of my listings, they are just now almost done paying it off, it was an extra fee of $25/mo onto of the current HOA fees. all i did was disclose this info to the new buyers and they were ok with it and it was a done deal!

I was the lead on the last phase of Lake Wildwood estates in the late 80's plus the broker I had listings on all 127 lots of the first phase of 540 lots... and then the war and Earthquake hit... if that did not happen I would in all probability be living in Penn Valley or Wildwood.. we are in good cycle now I actually got 30 new builds to market this year and sold them all.

@Steven Greenhill, don't forget a massive EARTHQUAKE!

Ducts many have falling off from earthquake. 

@Colleen: The dam is owned by the community, but the damage (from a small 2011 earthquake) is being repaired by a grant from the state, as the dam affects other waterways in the area.

If it's not earth settlement, it's the effects of earthquakes. 

Oh also remember the A market (the engine driving Bs and Cs) is ripe for a major correction and btw it's also due for a major earthquake.

I also consider the fact that when you are debt to the bank a disaster hits your house, fire, flood, tornando, earthquake you now have a partner who needs to help you make things right.  

And California ... who wants to deal with earthquakes?