The reality that climate behavior is like a toddler and less predictable than ever is having a measurable impact on the housing market prompted Realtor.com to partner with First Street, a nonprofit organization that provides data and critical resources on climate change.
The time has come – the time to take charge. This summer, July 30-August, at Inman Connect Las Vegas. On January 1, 2024, experience the complete reinvention of the most important event in real estate. Join your peers and the best in the industry to shape the future. learn more.
Homeowners in hurricane-prone states along the Sun Belt and throughout California under the ongoing threat of wildfires have had their home insurance policies canceled with little notice. New buyers need to plan for a delay in finding a home based on whether the carrier is willing to take the risk.
All in all, the climate’s toddler-like, less-predictable behavior than ever before is having a measurable impact on the housing market, a reality that prompted Realtor.com to partner with First Street, a nonprofit that provides data and information about climate change and weather. A great resource for disaster-related disasters. Inman learned that the real estate portal is using the foundation to provide insights on temperatures, wind events and air quality to aspiring homebuyers and real estate agents.
According to a March 13 press release, Realtor.com will deploy materials in three content modules: Fire Factor, Wind Factor and Air Factor. Each component is ranked based on the number of days a hotel experiences each extreme situation.
“Users can switch between factors to see how specific risks affect home size now and over time, showing current risk exposures and expected changes for each risk in 15 and 30 years, the length of a typical mortgage. ”, the press release stated.
first streetIts website says its mission is clear – “to connect climate risks to financial risks.” The group assists the insurance, finance and real estate verticals in bridging the two, providing a range of analytics to ensure large businesses fully understand how the natural world impacts their bottom line and the health of the people they serve. In other words, almost everyone.
Other organizations have emerged in recent years to address this basic need, such as AreaHub and ClimateCheck. TopHap is a real estate data provider that provides users with risk visualization through map-based environmental research. Redfin also uses First Street’s services.
A study reported by Inman last year found that the U.S. housing market may be overvalued by $187 billion due to uncalculated flood risks alone.
A study published last year showed that unrecognized flood risks from climate change mean the value of U.S. homes may be overvalued by $187 billion — more than twice the size of the “climate housing bubble” previously estimated. natural climate change.
The peer-reviewed study, led by economists at the Environmental Defense Fund (EDF), found some surprising areas such as Appalachia and northern New England to be hotspots of overvaluation.
The study blames outdated flood insurance rate maps and inconsistent state-level flood risk disclosure laws for underestimating the risks posed by climate change.
Florida-based United Property Casualty and Insurance Co. announced in August 2022 that it was withdrawing from its portfolio ahead of hurricane season and at the same time as several other insurers were pulling back from the Sunshine State. My home state, along with several other states, pulled out of the home insurance business.
As of November 2023, more than 15 major airlines have left the state, with Farmers being the latest significant example. orlando sentinel report About 100,000 policyholders in Florida will have to find new insurance providers.
The same thing happened in California. State Farm decided to leave the Golden State in 2023.
“We take our responsibility to manage risk seriously,” the company statement read. “We recognize the efforts of the governor’s administration, legislators and the California Department of Insurance (CDI) to mitigate wildfire losses.”
“Many communities in California’s rural and forested areas are not only facing an increase in the number and severity of wildfires, but also an increase in insurance coverage,” said Ryan Tompkins, a natural resources consultant at the University of California, San Francisco. question.” Washington post May 2023. “They’re being discarded. They’re not being renewed. We’re seeing an underlying, silent economic impact.”
angels News station KTLA It was reported in November that more people planned to leave, with Merastar Insurance Co., Unitrin Auto and Home Insurance Co. and Unitrin Direct Property and Casualty Co. to stop covering homes by early 2024, as well as Kemper Independence Insurance Co. . part of a larger company-wide decision. Allstate also left California.
Realtor.com said in a news release that 40% of U.S. homes, with a total value of just under $20 trillion, are at risk of declining valuations due to increased heat risks, wind damage and deteriorating air quality.
Homebuyers often turn to the Internet to search for properties before finding an agent. The more data they absorb about the market and its listings, the more informed they will be able to gain when physically touring available homes. Obviously, the ability to keep your home insured and intact for as long as you own it is part of that.
Email Craig C. Rowe
