More than 80% of potential home buyers now consider climate risks when choosing a home, with concerns such as wildfires, floods and extreme heat. Climate risks have become a crucial factor in home-buying decisions. However, it’s not just about knowing the risks — understanding how they impact long-term affordability, particularly through rising insurance costs, is just as important.
The new Zillow® climate risk score, provided by First Street, makes it easy for home buyers to understand potential hazards and insurance needs, whether they’re browsing via the search map or viewing specific for-sale listings. The feature highlights five key climate risks:
▪️ Flood
▪️ Wildfire
▪️ Wind
▪️ Heat
▪️ Air quality
Home shoppers can explore properties through an interactive map on which each risk is color-coded, allowing people to quickly assess the level of risk for any area. On for-sale listings, buyers will find a climate risk section that provides property-specific data. Each section shows how a specific risk might impact the home now and in the future, while also offering information on insurance requirements.
Zillow has partnered with First Street, a trusted leader in climate risk financial modeling, to deliver accurate, reliable data to home shoppers. First Street’s models, developed by leading scientists and vetted through a peer-review process, are used across multiple industries, ensuring that the climate insights given on Zillow are both credible and actionable. Zillow is the only platform that offers tailored insurance recommendations, along with comprehensive historical insights detailing whether and/or when a property or nearby area has experienced past climate events, such as flooding or wildfires.
Why this matters to buyers and sellers
Understanding a home’s vulnerability to risks like flooding and wildfires also plays an important role in financial planning, since the cost of insuring a property against climate-related risks can dramatically influence monthly payments and the affordability of a home.
For example, homes in flood-prone areas may require flood insurance, which often comes with high premiums. Zillow’s new climate risk feature provides this critical information upfront, allowing buyers to factor in the full cost of ownership, including potential insurance expenses, before making a decision. This transparency helps buyers plan ahead, avoid unexpected costs, and make more informed, financially sound decisions.
For sellers, having a clear understanding of a property’s climate risk can be equally valuable. Sellers can take proactive measures to mitigate hazards, such as flood-proofing or adding fire-resistant landscaping, which can enhance the home’s appeal and market value, and minimize unexpected issues at closing.
Empowering agents with data-driven insights
The data doesn’t just benefit buyers and sellers — it’s a powerful resource for real estate agents, and can add more transparency when those agents are advising clients. With climate risks being a primary concern for home shoppers, agents need to be equipped with accurate, property-specific data to guide their clients through the decision-making process.
This tool enables agents to provide their clients with information about a property’s potential vulnerabilities, such as flood risk, wildfire exposure or extreme heat. Armed with this data, agents can have more informed conversations with buyers about long-term affordability, including the potential costs of insurance and how those might impact a client’s budget. For seller’s agents, the feature highlights any mitigation efforts or improvements a property has undergone to reduce its exposure to climate risks. In both cases, agents benefit from data-driven insights, making them a trusted resource for clients navigating an increasingly complex real estate landscape shaped by climate change.
Zillow is turning on the lights, offering the critical data home buyers, sellers and agents need to make informed decisions. Whether you’re navigating flood risks or wildfire exposure, or planning for future insurance costs, Zillow’s climate risk score provides a simple and consumer-friendly way to understand and act on these risks.
For information about Zillow’s sustainability efforts, read about our validated emissions targets. To learn more about other sustainability priorities, read our 2023 Sustainability Report.