17 Feb Rethinking Real Estate: The Urgency of Climate Risk Assessment

Rethinking Real Estate: The Urgency of Climate Risk Assessment

For years, real estate has been all about location, it’s property features and the economics of market demand. But as climate change continues to intensify, it’s time to rethink how we think and evaluate real estate. With extreme weather events such as floods, wildfires, hurricanes, earthquakes and rising sea levels becoming more commonplace —the old way of assessing real estate just doesn’t cut it anymore, and hence the necessary rethinking of real estate.

The Need for Climate Risk in Property Evaluation

“Forget about square feet and the number of bathrooms. Home buyers now will also be asking about the weather.

Many people move to areas endangered by extreme weather events because the lifestyle and cost of living outweigh the risks. But that is changing, with soaring insurance costs, two recent devastating hurricanes, and wildfires in the Los Angeles area underscoring the issue”

Climate change isn’t some distant worry—it’s already affecting home values and investments today. Billions of dollars are lost every year due to climate-related disasters, and yet, many properties are still being evaluated without considering these risks. This outdated approach leads to overpriced properties, skyrocketing insurance costs, and financial instability for homeowners and investors.

A house’s risk of flood or wildfire usually isn’t as readily apparent as an ugly décor or a very cluttered home. But now, Zillow is joining home listing websites like Redfin, Realtor.com, and CoStar Group Homes.com by adding scores provided by climate-risk modeling company First Street. 

Zillow Group is one of the largest listing service companies, is rolling out climate-risk estimates that size up a home’s likelihood of damage from flood, fire, and wind over the next 30 years. These scores, along with soaring insurance costs, could change home buyers buying habits as they seek to avoid homes with high risk scores.

What Is Climate Risk Data and How to Use It When Shopping for a Home

Zillow has added climate risk data from First Street to give homebuyers important information about climate-related events when shopping for homes.

Climate Central | Land projected to be below annual flood level in 2050

Sea level rise and coastal flood risk maps — a global screening tool by Climate Central

Interactive global map showing areas threatened by sea level rise and coastal flooding.

Impact Map | Climate Impact Lab

The Climate Impact Map provides a highly localized picture of future climate impacts across the US and the globe. Explore how climate change will affect you.

Coastal Risk Screening Tool
Land projected to be below annual flood level in 2050
Explore sea level rise and coastal flood threats by adjusting the controls below.
For USA only

Climate change will cause a $1.47 trillion decline in U.S. home values by 2055, according to a new study from climate-research company First Street.