Redfin Publishes Air Factor Data From First Street to Show Risk of Poor Air Quality

Rhea-AI Summary

Redfin (RDFN) partners with First Street to provide Air Factor data for U.S. properties, highlighting climate risks. The surge in poor air quality days in the Western U.S. due to wildfire smoke is a key concern.

Insights

Environmental Economist

The integration of Air Factor data into Redfin's property listings is a significant development within the real estate sector, reflecting a growing consumer demand for environmental risk information. As an Environmental Economist, the economic implications are multifold. Firstly, this feature could potentially alter property values, with homes in areas of lower air quality risk possibly commanding higher prices. Conversely, properties in high-risk zones may experience a depreciation in value, affecting both homeowners and investors.

Furthermore, the long-term impact on the housing market could be substantial. Insurance premiums may rise in correlation with increased environmental risks, influencing buyer preferences and shifting market dynamics. This data provision by Redfin could set a precedent, prompting other brokerages to follow suit, thus fostering a more transparent and informed marketplace. The move also aligns with broader sustainability trends that are increasingly influencing consumer behavior and investment decisions.

Real Estate Market Analyst

As a Real Estate Market Analyst, it is pertinent to assess the strategic positioning of Redfin in providing air quality data. This initiative could enhance Redfin's competitive edge by catering to an emerging niche of environmentally conscious consumers. The decision to publish Air Factor data may attract a demographic that prioritizes health and environmental considerations in their home-buying decisions, potentially increasing traffic to Redfin's platforms.

The data's influence on consumer choice may also lead to a shift in demand towards properties in areas with better air quality, influencing development patterns and urban planning. It will be interesting to monitor how this added layer of data affects the velocity of real estate transactions in different areas and whether it leads to a more segmented market based on environmental quality indicators.

Public Health Expert

From a Public Health Expert perspective, the availability of air quality information at the property level is a significant advancement for public health awareness. Poor air quality is a well-documented risk factor for a range of health issues, including respiratory conditions and cardiovascular diseases. By making this data readily accessible, Redfin is empowering homebuyers to make informed decisions that could have long-term health implications.

Additionally, this move may prompt buyers to consider the health costs associated with living in areas prone to poor air quality, potentially leading to increased demand for homes in regions with cleaner air. This could have a broader impact on public health, as communities and policymakers may be incentivized to invest in air quality improvements to maintain property attractiveness and overall community health.

The property-level information shows the likelihood of experiencing poor air quality today and over the next 30 years from pollutants such as wildfire smoke and car emissions

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Redfin (redfin.com), the technology-powered real estate brokerage, is now publishing Air Factor data provided by First Street for nearly every U.S. property listed on Redfin.com and the Redfin iOS app. Redfin is the only brokerage to provide air quality risk data at the property level.

“Redfin wants to ensure that every single person searching for a home has the information they need to understand climate risks,” said Redfin Senior Vice President of Product and Design Ariel Dos Santos. “Air pollution is an important consideration as poor air quality becomes more frequent due to climate threats such as wildfire smoke.”

The number of poor air quality days in the Western U.S. surged by as much as 477% between 2000 and 2021, in large part due to wildfire smoke, according to a First Street analysis of data from the Environmental Protection Agency (EPA). A recent Redfin-commissioned survey found that 9% of recent U.S. home sellers cited concern about the impact of climate change as a reason for their move.

First Street’s Air Factor is a property-level risk model that estimates the likelihood of poor air-quality exposure based on the number of poor air quality days expected today and over the next 30 years. It includes two common pollutants: PM2.5, which often comes from wildfire smoke, and ozone (O3), which occurs when pollutants react with heat/sunlight.

“Air Factor takes into account environmental threats to air quality such as wildfire smoke as well as man-made pollutants like emissions from cars to create a full picture of what’s causing poor air quality and where,” said First Street CEO Matthew Eby. “People searching for their next home on Redfin will now be able to see exactly what they’re getting into with poor air quality, which is an important piece of the puzzle when considering climate risks.”

Redfin published a report today that shows about 1 million more people moved out of than into U.S. metros with high risk from poor air quality in 2021-2022, while low risk metros saw 1 million more people move in than out. The areas facing high risk from poor air quality are concentrated in the American West, which is grappling with intensifying wildfires, and many are in expensive states like California. Redfin found that the median home sale price in metros at high risk for poor air quality was $563,710 as of December 2023, which is 65% higher than the $341,483 median sale price in low risk metros.

Transparency around climate risks has the potential to impact which homes people choose to live in. A Redfin study from 2022 found that homebuyers who have access to flood-risk information when browsing home listings online are more likely to view and make offers on homes with lower flood risk than those who don’t have access.

Poor air quality risk data is now available on the Redfin website and iOS app, and it will be available on Android later this year. Redfin also features First Street climate risk data at the property level for wildfire, flood, wind and extreme heat.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240212623056/en/

Redfin Journalist Services:

Isabelle Novak, 414-861-5861

press@redfin.com

Source: Redfin

FAQ

What data is Redfin now publishing for nearly every U.S. property?

Redfin is now publishing Air Factor data provided by First Street for nearly every U.S. property listed on Redfin.com and the Redfin iOS app.

Why is Redfin providing air quality risk data at the property level?

Redfin wants to ensure that every person searching for a home has the information they need to understand climate risks, especially with the increasing frequency of poor air quality due to climate threats like wildfire smoke.

What percentage increase in poor air quality days was observed in the Western U.S. between 2000 and 2021?

The number of poor air quality days in the Western U.S. surged by as much as 477% between 2000 and 2021, primarily due to wildfire smoke.

What did a recent Redfin-commissioned survey reveal about U.S. home sellers?

A recent Redfin-commissioned survey found that 9% of recent U.S. home sellers cited concern about air pollution as a factor.