Zillow Adds Climate Risk to Home Listings

Tech giant Zillow has added "climate change risk" to the layers of data prospective home buyers can now view when perusing the country's most visited real estate website, CNBC first reported on Tuesday.

While much of the American southeast reels from the devastation inflicted by Hurricane Helene, now Hurricane Milton promises to deliver an even greater blow to much of Florida.

The colossal personal and financial damaged caused by hurricanes this year has prompted Zillow to add climate risk figures for every for-sale property listed on the site.

To pull the most recent data, Zillow has partnered with First Street, a company whose mission is to "leverage the most advanced climate science and engineering approaches to quantify and communicate the risk for every property in the country." Each for-sale listing on the real estate site will now display First Street's risk assessment for flood, fire, wind, air, and heat. It will also show the same risk percentage estimated for 15 and 30 years into the future.

According to the company, more than 80% of home buyers now consider climate risk when buying a home, with flood risk being the primary concern followed by fire.

Early estimates suggest that damage caused by Hurricane Helene could top $30 billion, yet much of the damage will likely not be covered by insurance. Flood damage is not typically covered by a standard policy and not required by mortgage lenders unless on a designated flood hazard zone. First Street aims to alert buyers by making them aware of potential dangers.

"Climate risks are now a critical factor in home buying decisions," said Skylar Olsen, chief economist at Zillow, in a release. "We're providing buyers and sellers with clear, property-specific climate data so they can make informed decisions. As concerns about flooding, extreme temperatures, and wildfires grow, this tool also helps agents inform their clients in discussing climate risk, insurance, and long-term affordability."

The outlet noted that for new listings in August, 16.7% are a major wildfire risk and 12.8% show a major risk of flooding.

"I think that's going to be the most direct impact of having scores on homes that quantify risk is that there may be some direct impact on real estate values, but a lot of that is going to go through the amount of insurance necessary to cover that home," said Ed Kearns, chief science officer at First Street.