Zillow’s Climate Risk Map Tackles Home Buyers’ Climate Anxiety
Globally, 43% of under-35s anticipate being displaced from their home in the next 25 years due to climate change (Ipsos, 2023). Noting increasing climate anxiety, US-based property platform Zillow launched its climate risk map, showing if property listings are at risk of wildfires, flooding, extreme temperatures, high winds or poor air quality.
Mapping Climate Risks
When browsing listings on Zillow, prospective home buyers can explore climate risk data through an interactive map (developed with New York-based climate data analytics firm First Street) that highlights five major risk categories: flood, wildfire, wind, heat and air quality. Each risk is represented by a colour and severity scale, allowing users to easily assess potential threats. The new feature also shows disaster insurance requirements for homes to inform potential buyers of possible insurance costs. “Climate risks are now a critical factor in home-buying decisions, as concerns about flooding, extreme temperatures and wildfires grow,” said Skylar Olsen, chief economist at Zillow.
Home Buyers’ Climate Considerations
More than 80% of Americans considered climate risks when buying a home in 2023 (Zillow, 2023). Consequently, Zillow isn’t the only property company highlighting potential hazards. In January 2024, American property listing platform Redfin launched a feature that lets prospective buyers visualise a neighbourhood’s average air quality and long-term air quality forecast. .
Increased Home Insurance Costs
In 2023, global insurance companies paid out $118bn following climate-related disasters (FT, 2024). In the UK, home insurance costs in Q1 2024 rose 35% compared with Q1 2023 (Quotezone.co.uk, 2024). In the US, certain states have seen increases ranging from 40% to 60% (FT, 2024). And in Australia, home insurance premiums grew as much as 50% in vulnerable areas in 2023 (The Guardian, 2023).
This article was first published on Stylus.com on October 7.