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

The increasing power of storms, floods and wildfires have made more potential home buyers pay attention to climate risks when shopping for a home. If you’re one of those buyers, you can now see whether a property you’re eyeing is at risk for a climate-related event by checking climate risk data on every home listed for sale on Zillow.

What is climate risk data?

Climate risk data tells you whether a property you’re considering on Zillow is at risk for flood, wildfire, high winds, extreme heat and/or poor air quality. It also gives you a history of previous climate-related events, and an estimate of the likelihood that such an event could affect that home over the next 30 years.

The information can help you determine the degree of risk you could be assuming when you buy any given property for-sale, and how much those risks could add to the cost of insuring and heating/cooling a home you’re considering. 

"Climate risks influence where most prospective buyers shop for a home," says Manny Garcia, a senior population scientist at Zillow.  "While all generations juggle trade-offs like budget, floor plans and commute times, younger home shoppers are more likely to face another consideration: They want to know if their home will be safe from rising waters, extreme temperatures and wildfires."

Compared to five years ago, more homes listed for sale in the U.S. are associated with major climate risks, according to a Zillow® analysis of new listings in August 2024. The analysis was fueled by data from First Street, a trusted leader in climate risk modeling that Zillow is partnering with to offer climate risk data. The analysis found that 16.7% of new listings were at major risk of wildfire, while 12.8% came with a major risk of flooding.

Here’s how the climate risk data works and what you can expect from the new feature:

Where can I find climate risk data on a for-sale listing?

Each for-sale home listing has a section labeled “Climate risks” that contains detailed, property-specific data from First Street on each of the five risk categories: flood, wildfire, wind, heat and air quality.  Within this section, you can click on the risk category you want to view to see how these risks might affect the home now and in the future. You can also see crucial information on wind, fire and flood insurance requirements.

If you’re searching for homes on Zillow’s interactive map, you have the option to explore climate risk data for the area by clicking on the “map options” icon and selecting the risk category you want to see. Each risk will be shown via a color scale that gets lighter or darker  depending on the intensity of that risk.  

Why is it important to know a property’s climate risk?

Knowing the climate risk associated with a property can help you plan for insurance and energy costs associated with those risks. It also helps you plan your budget if you choose to live in a home that will require extra insurance to protect you from the reported risks.

Zillow research shows that the typical homeowner lives in their home for 15 years, making it especially important to know as much about the home as possible.

How accurate is the climate risk information?

The climate information on Zillow for-sale listings is provided by First Street, which specializes in climate risk modeling. The models — developed by leading scientists and vetted through a peer-review process — are used by governments and across industries as diverse as real estate, banking, government and insurance.

The data is continually updated to reflect the latest scientific research and modeling, so you can expect to see the most current and reliable information for the property.

How does the climate risk data on Zillow compare with federally designated flood zones or other local risk assessments?

The flood data on Zillow and the flood zones mapped out by the Federal Emergency Management Agency (FEMA) are both independent assessments derived from different methodologies.

The Zillow data from First Street assesses a property's 30-year flood risk from rain, rivers, tides, and storm surge, considering climate change. FEMA maps do not account for high-intensity rainfall or future climate changes, and are used to determine insurance and building code requirements. Discrepancies between the two can occur due to these differences.

What if my home is in a high-risk area?

If a home you’re eyeing has a higher risk associated with it, you’ll see a recommendation on whether to buy insurance outside of homeowners insurance to cover the risk. 

Should I buy a home with a high climate risk?

Buying a home involves many factors, and climate risk is just one of them. It’s a deeply personal decision; what might be concerning for one person may not matter at all to another if it’s their dream home. The key is to have this information readily available so you can make an informed decision — this is why Zillow is providing climate risk data. Plus, it’s important to understand not just the costs you’ll face now, but also any potential expenses down the road that might come with living in a high climate risk area.

You can discuss your thoughts and share your preferences with your agent to help focus your search on what you can afford and where you feel most comfortable.  

Zillow research shows that more than 80% of home shoppers consider climate risks when looking for a new home. Zillow research also shows that areas with higher flood risk tend to see more mortgage application denials and withdrawals, but also faster home value growth, an indication that demand remains strong despite the risks. That may be because the homes are located on or near waterfront or in other areas with natural beauty but higher risks from nature.

What can be done to lower the cost associated with higher climate risks?

If a home has a high climate risk score, First Street has resources that might help lower insurance costs for a particular home: flood, wildfire, wind, air and heat. If the home is located in an area with known climate-related risks, your agent should be familiar with steps you can take to reduce the risk or the damage if an event occurs.

If one home has a high risk, does that mean others in the same area will, too?

Not necessarily. Flood risk often varies across and within neighborhoods because of the way floods are measured. Even next-door neighbors can have significant differences in flood risks, largely due to elevation, proximity to water or wetlands, and proximity to flood risk reduction projects.

Risks such as fire, wind, heat and air tend to be more similar across communities.  For both fire and wind, a property’s vulnerability is based on a home’s specific building characteristics, such as the building materials used, size of the structure, and slope of the property — factors that influence its ability to survive an event.

Is climate risk data available for all homes on Zillow?

At this time, the climate risk data is available only for homes listed for sale and does not include homes listed for rent.

How will climate risk information affect home sellers?

The main objective in offering climate risk data is to help people evaluate long-term factors affecting homeownership, things like safety, resilience, and costs, before they buy a home. 

If a home has a high risk, First Street offers these resources to help (flood, wildfire, wind, air and heat). While the solutions won’t change the risk score, taking steps outlined by First Street could help lower the insurance costs for a particular home. Making your home more resilient can help you standout among other homes in a high climate risk environment.

When will climate risk data be available?

Climate risk data will be available on for-sale listings on the Zillow app for iOS® and on Zillow.com by the end of 2024. Android™ availability is expected in early 2025. 

You can find more information about Zillow's work on climate and other sustainability priorities in this 2023 Sustainability Report.