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Climate risks threaten trillions of dollars in real estate
ZZillow Group(Z) Prnewswire·2025-03-12 12:03

Core Insights - Trillions of dollars' worth of U.S. real estate is at significant risk from natural disasters, including fire, flood, and extreme wind, with a total estimated value of 33.4trillionacrosstheserisks[2][10]−Majormetroareas,particularlyinCaliforniaandNewYork,arehighlightedashavingsubstantialresidentialrealestatevaluesatrisk,withLosAngelesandNewYorkCityleadinginfireandfloodrisksrespectively[3][6]SummarybyRiskTypeFireRisk−Homeswithmajorfireriskarevaluedatapproximately33.4 trillion across these risks [2][10] - Major metro areas, particularly in California and New York, are highlighted as having substantial residential real estate values at risk, with Los Angeles and New York City leading in fire and flood risks respectively [3][6] Summary by Risk Type Fire Risk - Homes with major fire risk are valued at approximately 9.1 trillion nationally, with eleven metro areas having at least 100billioninresidentialrealestateatmajorrisk[2][6]−TheLosAngelesmetroareahasthehighesttotalvalueofhomesatmajorriskoffire,estimatedat100 billion in residential real estate at major risk [2][6] - The Los Angeles metro area has the highest total value of homes at major risk of fire, estimated at 831 billion [2][6] Flood Risk - Homes with major flood risk are valued at around 7trillion,withNewYorkCityhavingthehighesttotalvalueatrisk,estimatedat7 trillion, with New York City having the highest total value at risk, estimated at 593 billion, followed closely by Miami at 580billion[3][6]−Themedianlistpriceforhomeswithextremefloodriskis22580 billion [3][6] - The median list price for homes with extreme flood risk is 22% higher than for homes with minor flood risk [4] Wind Risk - Homes with major wind risk are valued at approximately 17 trillion, with New York City also leading in this category at around 3trillion[2][3][6]−MiamiandBostonalsohavesignificantvaluesatrisk,exceeding3 trillion [2][3][6] - Miami and Boston also have significant values at risk, exceeding 1 trillion each [3] Market Trends - Over 80% of home shoppers are considering climate risks when searching for new homes, indicating a shift in buyer behavior [4] - Despite the risks, many high-risk areas remain desirable, often commanding higher home values; homes with extreme fire risk have a median list price 49% higher than those with minor fire risk [4] Data Accessibility - Zillow provides climate risk data on its platform, allowing home shoppers to evaluate risks related to flood, wildfire, wind, heat, and air quality, which aids in informed decision-making [5]