Zillow now shows climate risk data on homes for sale

CNN
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Hurricane Helene caused devastating damage in the southeastern United States at the end of September, causing billions of dollars in property damage. This week, another storm, Hurricane Milton, is expected to reach Florida and cause even more destruction.

As increasing natural disasters threaten larger swathes of the country, assessing a region's climate risk has become an essential part of many Americans' search for a new home. According to a recent Zillow survey, more than four in five potential home buyers consider climate risks when they shop.

Now, in a feature published last month, Zillow shows how vulnerable homes for sale could be to extreme climate events.

Working with First Street, a climate modeling company, the climate data shared by Zillow is divided into five categories: flooding, wildfires, wind, heat and air quality. Home buyers can explore climate risk data on Zillow's website through color-coded maps or in individual listings. The feature not only shows the risks of a home today, but also estimates the climate risks of a home 15 and 30 years into the future, which correspond to the typical terms of fixed mortgages.

In addition, Zillow is the only platform that offers tailored insurance recommendations in addition to risk information.

“Climate risks are now a critical factor in home-buying decisions,” Skylar Olsen, chief economist at Zillow, said in a statement. “As concerns grow about flooding, extreme temperatures and wildfires – and what that could mean for future insurance costs – this tool also helps agents educate their clients as they discuss climate risks, insurance and long-term affordability.”

CoreLogic, a data analytics firm, estimates that insured flood losses from Hurricane Helene will be between $6 billion and $11 billion, while uninsured flood losses are estimated at $20 million to $30 million.

A growing number of home listings are associated with greater climate risk compared to homes listed for sale five years ago, according to an August Zillow analysis. Of all new listings on the site in August, 55% are at risk of extreme heat and a third are at risk of extreme wind. Nearly 17% of homes for sale are at high risk of wildfires, 13% are at risk of air quality, and 13% are at risk of flooding.