Zillow has added a new feature to its property listings that provides climate risk scores, assessing potential hazards such as flooding, fire, and heat on a scale from 1 to 10. This addition has sparked mixed reactions within the real estate community. For example, a four-bedroom home in Revere, valued at under $500,000 and boasting second-floor water views, is now listed with severe or extreme flood risk according to Zillow’s climate assessment.
Similar warnings are attached to a two-bath home near a “serene riverfront” in Haverhill and a seasonal three-bedroom property a short walk from the river and beach. These otherwise idyllic homes now carry significant flood risk warnings based on Zillow’s new feature, which uses data from First Street, a climate risk financial modeling firm. Zillow’s chief economist, Skylar Olsen, stressed the importance of this information given the realities of climate change.
The data, sourced from the Federal Emergency Management Agency and NASA’s climate models, predicts increasing risks due to rising sea levels and more severe weather patterns. Theresa Hatton, chief executive of the Massachusetts Association of Realtors, observed that the risk scores are making buyers more cautious and aware of the risks associated with these properties. It also encourages them to obtain appropriate insurance.
However, some real estate professionals, like Dorothy McLaughlin, a Hingham-based agent, argue that these scores may unduly influence buyers.
Zillow reveals climate risk scores
McLaughlin questioned the high flood risk for her Revere listing, suggesting that the threat is overstated.
Despite such skepticism, Zillow’s data indicates growing risk over time. A home with a 4% likelihood of flooding this year could face up to a 97% risk in the next 30 years due to climate changes. In Scituate, agent Andrea Campbell criticized the methodology, noting that structural details, like elevations on concrete posts, are not considered in the risk scores.
Emily Norton, executive director of the Charles River Watershed Association, sees Zillow’s initiative as a positive step but points out that Massachusetts is one of only 14 states without mandatory flood risk disclosure in real estate transactions, potentially leaving buyers unaware of recurring flood issues. Brookline real estate agent Evan Blaustein considers the data helpful for planning, even if it complicates selling high-risk properties. The climate scores can impact housing markets, but in Massachusetts, where there is already a housing shortage, the immediate effect may be limited.
Buyers are becoming more aware and cautious, and experts anticipate increased flood insurance premiums in response to these heightened risks. For some sellers, like Rebecca Kleppe, whose Haverhill condo has an extreme flood risk score, the revelations are perplexing, especially since higher-risk properties in her area have not experienced problems. Nevertheless, Kleppe was able to find a buyer before the new scores could influence her sale.
Zillow’s climate risk scores are prompting a reevaluation of real estate transactions, affecting both buyer caution and seller strategies in an era of increasing climate uncertainties.
