In the wake of Hurricane Helene, Zillow took a significant step to protect homebuyers by integrating climate risk data into real estate listings. This move aims to provide prospective homeowners with essential information about the potential threats posed by climate change.
Previously, many homeowners in North Carolina were unaware of their vulnerability to flooding because they were not located within FEMA-designated flood zones. However, climate risk firm First Street, which incorporates the effects of climate change into its real estate risk scores, revealed that a much larger portion of the state's homes are at risk of flooding.
First Street recently launched a comprehensive climate risk dataset for every property listed on Zillow. This data includes risk scores for flood, fire, wind, air and heat, both now and over the next 15 to 30 years. By providing this information, Zillow aims to assist buyers and sellers in making informed real estate purchasing decisions.
Zillow's partnership with First Street is especially valuable as climate change intensifies the severity of precipitation, even in smaller storms. The data also includes recommendations on whether homeowners should purchase flood insurance and provides links to estimate insurance costs.
According to a Zillow survey, more than 80% of homebuyers now consider climate risk when making purchasing decisions. The main concern is the risk of flooding, followed by fires. Zillow's analysis of August listings indicates that a growing number of homes face higher climate risk than five years ago. This trend is evident across all five climate risk categories, with a significant portion of the new listings facing severe fire and flood risks.
As more consumers incorporate climate scores into their purchasing decisions, the impact on home values is expected to increase. Insurance costs, which are factored into home prices, will likely increase as both the need for and cost of insurance grow. This could lead to a decrease in the value of homes located in high-risk areas.
Zillow's integration of climate risk data is a crucial step in helping homebuyers navigate the complexities of climate change and make informed decisions about their real estate investments.
