Zillow now offering climate impact ratings on property listings
QUINCY - For some, it may be the New England Dream to scrap the white picket fence and bring on the waterfront view. Only recently, the shoreline and the front yard have come too close. We have seen it from rising tides to severe weather, and now Zillow is offering climate impact ratings on property listings.
"I thought it would be coming before now even," says Jeff Baldock, a Squantum homeowner talking about the change on Zillow. "This week will be a king tide in the next couple of days, and my yard is only a couple of feet above that, so if we had a storm surge, I'd be screwed."
As a firefighter, Baldock's crews often use the area for flood training. It has him wondering if it's time to move.
"I would like to be up on higher ground, so the climate change and flooding is on our radar," said Baldock.
Homebuyers thinking about climate risk
According to Zillow research, 80% of homebuyers are thinking about climate risk. It's why the company started putting the climate impact ratings on listed properties. The factors range from issues like flooding to wind damage potential.
"We know affordability is a challenge for many, and insurance costs are a large part of why monthly costs are rising," said Orphe Divounguy, a Senior Economist at Zillow.
He says Zillow partnered with a company called First Street. They work to predict the future impacts of climate change to an area.
"They have become the standard for climate financial risk modeling. It's used in real estate, banking, government and even insurance," said Divounguy.
Ratings on the website can vary from place to place, even if the two homes aren't very far apart. How First Street comes up with the ratings is complex. They combine new technologies and model predictions with decades of peer-reviewed research for the area. This helps to give an idea of what could happen in an actual event.
"It's really important that people are equipped with all of their information when making housing decisions," said Divounguy. "Sellers [should] work with an agent. Climate risk data is an important part of the data. It's here whether we like it or not."
Will homebuyers take this into account?
"I have talked to several real estate people, and they say potential buyers are willing to absorb the risk," said Baldock.
"Climate risk is only one factor that people take into account, but it's not the only factor, right? People are still moving to booming job centers and people like waterfront properties with great views," said Divounguy.
Now, at least buyers know the risk they assume.