Zillow Adds Climate Risks to Home Search – Forbes Advisor

Want to know how at risk your next home is from a climate disaster? Zillow is there.

Zillow is moving to put climate risk at the heart of its sales offerings, providing buyers with key data on flood, wildfire, heat, wind and air quality risks.

This tool is operated by the First Street Foundation, a nonprofit organization that uses peer-reviewed scientific research and models to measure flood risk in the United States. It offers climate readings, interactive maps and insurance insights so buyers aren't caught off guard when it's too late.

Orphe Divounguy, a senior economist at Zillow, says this tool is designed to empower buyers.

“Zillow survey data shows that more than 80% of home buyers consider climate risks when purchasing a home, so this is a factor for most people,” says Divounguy. “However, it is one of many factors that come into play when making a home purchase decision, and every buyer will weigh it differently.”

Zillow isn't the first real estate listing site to implement these risk factors – Realtor.com began providing similar data in March. With both platforms now in play, homebuyers have more opportunity to assess how the elements could impact their dream home – and their wallet – before purchasing.

Daniel Cabrera, owner of Sell My House Fast in San Antonio, says Zillow's move to provide climate risk information on its website will influence how homebuyers make their decisions.

“As this data becomes more available and transparent, I suspect buyers will avoid homes in a high-risk area unless those homes have been designed or retrofitted to withstand these threats,” Cabrera says. “It will also likely result in further declines in property values ​​in natural disaster-prone areas.”

What to expect from Zillow's climate risk data

Zillow's climate risk information will be integrated into the iOS app and website by the end of the year, with availability for Android expected early next year.

The new tool includes an interactive map that highlights key risks such as floods, wildfires, wind, heat and air quality and is color-coded for better understanding.

When homebuyers view listings, they will find a dedicated climate risks section with detailed data on how these risks could affect the home now and in the future.

In addition to climate event history for homes, Zillow also provides tailored insurance recommendations so you know if a property has been hit by floods or wildfires before. This combination of risk data and insurance advice can help you plan smarter for long-term affordability and security.

The Hidden Costs of Climate Change: The Flood Risk Home Buyers Don't See

As climate change worsens, homeowners and markets across the U.S. face increasing financial risks from extreme weather, particularly flooding.

According to an analysis published by Nature Climate Change, a monthly peer-reviewed scientific journal, over 14 million U.S. properties are at risk of flooding, with annual damages exceeding $32 billion. Climate forecasts suggest these figures will rise by at least 11% by 2050, significantly increasing pressure on insurers, mortgage lenders and property owners.

A worrying trend is emerging: many homes in flood-prone areas are overvalued. A study shows that properties within the 100-year flood zone are about 8.5% more expensive than they should be because flood risks are often not fully factored into market values. This has raised fears of a possible housing bubble in these areas as property prices could eventually fall, leaving homeowners vulnerable to financial losses.

Efforts to address these risks include updates to the National Flood Insurance Program (NFIP), which is moving to risk-based pricing. These changes, along with improved flood risk disclosure, are intended to help property owners better understand the true costs of climate risks.

However, if flood risks are not properly accounted for in property values, many Americans could face significant losses in home equity, which would also impact local governments that rely heavily on property taxes.

For homeowners, understanding flood risk is more important now than ever as the effects of climate change reshape real estate markets across the country.

Consumer tips before buying a house

Do your climate homework

Use climate risk data before choosing a home. Know the specific risks in your region – be it floods, wildfires or heat waves.

Here are some valuable tools for assessing these risks:

• FEMA National Risk Index – Provides a comprehensive overview of natural hazards in the United States, including floods, earthquakes, and severe storms.
• USDA Wildfire Risk to Communities – Provides detailed insights into wildfire risk for homes in specific regions, particularly useful for properties near forests or drylands.
• Risk factor – Analyzes floods, fires and other climate-related threats to individual properties and provides you with a risk assessment.
• Climate check – Delivers property-specific climate risk assessments covering heat, drought, fire and flooding.

When buying a home, don’t be surprised by the cost of insurance

Budget for insurance when you start buying a home — especially given that climate risks like floods or wildfires are driving up costs. With a tool like Forbes Advisor's home insurance calculator, you can easily estimate premiums with just a few questions.

And always shop around. Different insurers offer different tariffs. Comparing the offers will help you find the best deal for your budget.

Sustainable upgrades pay off

Invest in eco-friendly or disaster-proof improvements (e.g., fire-resistant landscaping). These can protect your home and increase resale value.

Assess the local infrastructure

Research the area's ability to handle extreme weather – look for flood protection, evacuation plans and disaster relief resources.

When speaking with real estate agents, have some key questions about infrastructure ready. For example: How reliable is the power and how quickly is it restored during outages? What is the average emergency response time in the region?

Additionally, inquire about the city's water system, particularly whether any older lead pipes have been replaced, and inquire whether there have been any recent problems with the sewer system.