Zillow introduces First Street's comprehensive climate risk data on for-sale listings across the US

Rhea-AI Summary

Zillow is introducing climate risk data on for-sale property listings across the U.S., provided by First Street. Home shoppers will gain insights into five key risks: flood, wildfire, wind, heat, and air quality. The feature includes risk scores, interactive maps, and insurance recommendations. Available on Zillow's iOS app and website by year-end, with Android availability expected early next year.

The new climate risk section offers detailed, property-specific data for each risk category, showing current and future impacts, along with insurance requirements. Zillow's analysis reveals an increase in new listings with major climate risks compared to five years ago. The partnership with First Street aims to deliver accurate and reliable data to home shoppers, helping them make informed decisions about future homes and insurance needs.

Positive

• Introduction of comprehensive climate risk data on for-sale listings
• Partnership with First Street, a leader in climate risk modeling
• Inclusion of insurance recommendations alongside climate risk data
• Expansion of innovative tools to address climate-related challenges
• SBTi validation of Zillow's science-based targets for reducing greenhouse gas emissions

Negative

• Increase in new listings with major climate risks compared to five years ago
• 16.7% of new listings in August were at major risk of wildfire
• 12.8% of new listings in August came with a major risk of flooding

Insights

Market Research Analyst

Zillow's introduction of comprehensive climate risk data on property listings is a significant move that could reshape the real estate market. This feature addresses growing consumer concerns, with 80% of buyers now considering climate risks in their purchasing decisions. The inclusion of detailed risk scores for flood, wildfire, wind, heat and air quality, along with insurance recommendations, provides valuable information for potential buyers.

This initiative positions Zillow as a leader in transparent property information, potentially increasing user engagement and trust. It may also influence property valuations and buyer behavior, especially in high-risk areas. The partnership with First Street, a respected climate risk modeling firm, adds credibility to the data.

For investors, this could signal Zillow's commitment to long-term relevance and user value, potentially boosting its competitive edge in the digital real estate space. However, it may also expose the company to new liabilities if the data is perceived as inaccurate or misleading.

Environmental Policy Expert

Zillow's integration of climate risk data into its platform is a landmark development in mainstreaming climate change considerations in real estate. This move aligns with growing regulatory and market pressures to address climate-related financial risks. By providing this information, Zillow is facilitating more informed decision-making and potentially influencing property markets in climate-vulnerable areas.

The company's commitment to science-based targets for reducing its own greenhouse gas emissions, validated by the Science Based Targets initiative (SBTi), demonstrates a holistic approach to climate issues. Zillow's targets, including a 94% reduction in Scope 1 and 2 emissions by 2030 and engaging 75% of suppliers in emissions reduction, are ambitious and align with global climate goals.

This dual approach of providing climate risk information and addressing its own environmental impact positions Zillow as a responsible corporate actor in the face of climate change, potentially enhancing its reputation and long-term sustainability.

For-sale listings on Zillow will now feature detailed climate risk information for five key categories — flood, wildfire, wind, heat and air quality — along with insurance recommendations

SEATTLE, Sept. 26, 2024 /PRNewswire/ -- Zillow® is introducing climate risk data, provided by First Street, the standard for climate risk financial modeling, on for-sale property listings across the U.S. Home shoppers will gain insights into five key risks—flood, wildfire, wind, heat and air quality—directly from listing pages, complete with risk scores, interactive maps and insurance requirements.

With more than 80% of buyers now considering climate risks when purchasing a home, this feature provides a clearer understanding of potential hazards, helping buyers to better assess long-term affordability and plan for the future. In assisting buyers to navigate the growing risk of climate change, Zillow is the only platform to feature tailored insurance recommendations alongside detailed historical insights, showing if or when a property has experienced past climate events, such as flooding or wildfires.

"Climate risks are now a critical factor in home-buying decisions," said Skylar Olsen, chief economist at Zillow. "Healthy markets are ones where buyers and sellers have access to all relevant data for their decisions. As concerns about flooding, extreme temperatures and wildfires grow — and what that might mean for future insurance costs — this tool also helps agents inform their clients in discussing climate risk, insurance and long-term affordability."

Climate risk information will be available on the Zillow app for iOS® and on the Zillow website by the end of the year, with Android™ availability expected early next year.

Navigating climate risk scores on Zillow
When using Zillow's search map view, home shoppers can explore climate risk data through an interactive map highlighting five key risk categories: flood, wildfire, wind, heat and air quality. Each risk is color-coded and has its own color scale, helping consumers intuitively navigate their search. Informative labels give more context to climate data and link to First Street's property-specific climate risk reports for full insights.

When viewing a for-sale property on Zillow, home shoppers will see a new climate risk section. This section includes a separate module for each risk category—flood, wildfire, wind, heat and air quality—giving detailed, property-specific data from First Street. This section not only shows how these risks might affect the home now and in the future, but also provides crucial information on wind, fire and flood insurance requirements.

Nationwide, more new listings came with major climate risk, compared to homes listed for sale five years ago, according to a Zillow analysis conducted in August. That trend holds true for all five of the climate risk categories Zillow analyzed. Across all new listings in August, 16.7% were at major risk of wildfire, while 12.8% came with a major risk of flooding.

Zillow partnership with First Street
Zillow has partnered with First Street, a trusted leader in climate risk modeling, to deliver accurate, reliable data to home shoppers. First Street's models, developed by leading scientists and vetted through a peer-review process, are used across multiple industries, including real estate, banking, government and insurance, ensuring that the climate insights given on Zillow are both credible and actionable.

First Street's analysis of the impact of Hurricane Debby found 78% of properties flooded by that hurricane were outside FEMA flood zones, and consequently located where flood insurance isn't mandatory. It's important to note that 85% of these properties would have received an insurance recommendation on Zillow, highlighting how climate risk data can guide users in assessing insurance needs and making informed decisions about their future homes.

"At First Street we are on a mission to connect climate change to financial risk," said Matthew Eby, founder and CEO of First Street. "Partnering with Zillow helps us achieve that mission by providing the millions of everyday users on the Zillow platforms with the same property-specific climate risk data that is used by top banks, agencies and investors."

SBTi validates Zillow's science-based targets
Zillow is not only expanding its suite of innovative tools and data to address climate-related challenges, but is also taking steps to reduce its own environmental footprint. Earlier this week, Zillow announced that the Science Based Targets initiative (SBTi) validated Zillow's near-term science-based targets for reducing greenhouse gas (GHG) emissions. Zillow's validated targets are:

• To reduce Zillow's absolute scopes 1 and 2 GHG emissions 94% by 2030 from a 2019 base year.
• For 75% of the company's suppliers to have science-based targets for emissions reductions covering procured goods and services, capital goods and business travel by 2028.

See our blog post here for more information about SBTi's validation of Zillow's science-based targets. For more information about Zillow's work on its climate and other sustainability priorities, read our 2023 Sustainability Report.

About Zillow Group: 
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2024 MFTB Holdco, Inc., a Zillow affiliate.

About First Street: 
First Street™ is the standard for climate risk financial modeling (CRFM) working to connect climate change to financial risk. First Street uses transparent, peer-reviewed methodologies to calculate the past, present, and future climate risk for properties globally and makes it available for citizens, industry and government.

(ZFIN)

View original content to download multimedia:https://www.prnewswire.com/news-releases/zillow-introduces-first-streets-comprehensive-climate-risk-data-on-for-sale-listings-across-the-us-302259357.html

SOURCE Zillow

FAQ

What climate risk data is Zillow adding to its for-sale listings?

Zillow is adding data on five key climate risks: flood, wildfire, wind, heat, and air quality. This includes risk scores, interactive maps, and insurance recommendations for each property.

When will the climate risk data be available on Zillow (ZG)?

The climate risk data will be available on Zillow's iOS app and website by the end of 2024, with Android availability expected in early 2025.

Who is providing the climate risk data for Zillow (ZG)?

The climate risk data is provided by First Street, a trusted leader in climate risk modeling.

What percentage of new listings on Zillow (ZG) had major wildfire risk in August 2024?

According to Zillow's analysis, 16.7% of new listings in August 2024 were at major risk of wildfire.

What are Zillow's (ZG) science-based targets for reducing greenhouse gas emissions?

Zillow aims to reduce its absolute scopes 1 and 2 GHG emissions by 94% by 2030 from a 2019 base year, and for 75% of its suppliers to have science-based targets for emissions reductions by 2028.