Buying a home can feel overwhelming. You’ve got to think about the commute, mortgage options, and whether the kitchen is big enough. But now, there’s another crucial factor to consider: climate change. With increasing wildfires, hurricanes, and rising sea levels, experts urge buyers to pay attention to climate risks in their chosen location, especially if you’re signing a 30-year mortgage.
In recent years, real estate platforms have tried to incorporate climate risk data into their listings. Unfortunately, one major site recently removed its climate scores after pressure from the housing industry, which claimed the information was misleading and harmful to sales, as reported by Inside Climate News fellow Claire Barber.
Even with that pullback, various resources are still out there to help buyers navigate the impact of climate change. It’s essential to understand that no place is completely safe. Research shows every region faces some climate risk, from the Arctic to urban centers like New York City. But not all areas are hit the same way. For example, Jesse Gourevitch, an economist at the Environmental Defense Fund, says buyers should research the specific risks of any area they consider.
As a prospective buyer, you can’t always rely on sellers to disclose weather-related issues upfront, but asking questions and researching the neighborhood pays off. The Federal Emergency Management Agency (FEMA) offers flood hazard maps that show risk levels by county. Still, be cautious—around 75% of those maps are outdated, according to an investigation by NBC News.
In March, The New York Times published a detailed guide on home buying amid climate change, pointing out various free resources available for assessing local risks. Yale Climate Connections also recently shared a list of tools to explore flooding risks. There’s even a new app called Open Climate Risk, which evaluates wildfire threats and launched recently by CarbonPlan.
Floods are among the costliest weather events in the U.S., racking up more than $179 billion in damages annually. Homeowners in flood-prone areas, like Florida and Louisiana, face skyrocketing insurance premiums, making it a crucial factor in home selection. Benjamin Keys, a real estate professor at the University of Pennsylvania, warns that buyers should think about how rising insurance costs could affect their ability to afford a property in the future. However, insurance costs can vary between states and even neighborhoods, according to Gourevitch.
In 2024, Zillow began incorporating climate risk data to help buyers make better informed decisions, but just over a year later, they pulled this information after receiving complaints from real estate professionals. Despite this setback, other platforms like Homes.com and Redfin continue to feature climate risk analyses. In Connecticut, for instance, the Insurance Department has launched a tool that rates properties’ past climate damage and future risks. This growing interest in climate data reflects an urgent need in the housing market.
A recent report from First Street estimates that climate change could wipe out $1.47 trillion in real estate value over the next 30 years. Conflicting data from different sources can confuse homebuyers, making it essential to verify information from multiple channels. Gourevitch recommends looking at various information sources and seeking consensus when assessing risks.
So, as you dive into the home-buying process, keep these climate considerations in mind. The landscape is changing, but with the right research and resources, you can make informed decisions for your future.
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