The recent removal of a climate risk feature by Zillow, the nation’s largest real estate listing website, has sparked an intense debate over how climate transparency should intersect with housing markets. The tool ranked more than one million homes based on exposure to extreme weather risks, including flooding, wildfires, heat stress, and air quality concerns. Its removal followed backlash from real estate agents and homeowners who questioned the accuracy of the data and its potential impact on home values and sales.
To better understand the implications of Zillow’s decision, Jeff Gitterman, managing director of Gitterman Asset Management, shared his perspective on how climate risk data is reshaping real estate and investor decision making. Gitterman pointed to pressure from the California Multilisting Organization (CMLS), which requested the feature be taken down over concerns it could materially affect property transactions. Data cited by CMLS showed that homes identified as having significant flood risk experienced an 8% decline in value compared to lower risk properties.
Gitterman noted that the controversy highlights a broader tension between historical data and forward looking climate science. While some stakeholders argue that past weather patterns suggest certain properties are safe, First Street, a leading climate risk data provider, relies on advanced modeling that factors in evolving climate conditions. According to Gitterman, First Street’s data is widely used by banks and insurance companies and is considered among the most credible sources available, particularly given the limitations of outdated FEMA flood maps.
The reliance on legacy mapping tools continues to complicate real estate decision making. Gitterman emphasized the need for more sophisticated models, including artificial intelligence driven forecasting, to better assess future climate exposure. He also pointed to resources such as Probable Futures, which provides free climate risk maps and forward looking parameters to help homeowners and buyers understand potential threats.
Despite improvements in climate modeling, Gitterman cautioned that no dataset can provide absolute certainty. He advised buyers to conduct thorough due diligence by reviewing multiple data sources, understanding local floodplain conditions, and examining historical climate trends. He also highlighted that homeowners can reduce exposure and insurance costs through preventative upgrades and resilience focused property improvements.
Recent years have underscored how rapidly climate risks are changing. Gitterman cited Asheville, North Carolina, as an example of an area not historically associated with catastrophic flooding, yet recently devastated by extreme rainfall events. He also referenced New York City, where aging infrastructure is increasingly overwhelmed by flash floods driven by intense storms. These developments signal a shifting risk profile for many communities previously considered safe.
Gitterman warned that the real estate market may face ongoing friction between sellers seeking to maximize prices and buyers who are becoming more climate aware. He compared the current environment to the lead up to the 2008 housing crisis, when poorly understood risks embedded in financial products contributed to widespread market instability. As climate conscious buyers demand greater transparency, this tension is likely to intensify.
For prospective homebuyers, Gitterman stressed the importance of evaluating FEMA risk maps, reviewing property elevation data, and understanding long term insurance implications. Purchasing in high risk areas may lead to sharply rising premiums or reduced insurance availability as climate impacts worsen. These considerations are becoming essential components of financial planning in real estate.
In conclusion, the debate surrounding Zillow’s climate risk feature reflects a broader reckoning within the housing market. As climate data becomes more sophisticated and widely available, homeowners and buyers must take a proactive approach. By leveraging credible tools and conducting comprehensive research, individuals can protect their investments while contributing to a more resilient and transparent real estate market in an increasingly uncertain climate future.