Zillow is now flagging Richmond homes for climate risk – here's how property values ​​and homeownership could change

Zillow recently introduced climate risk assessments to its real estate listings, increasing awareness of how environmental changes can impact real estate, including homes in Richmond, Virginia.

This addition follows similar moves by Realtor.com, which considered weather-related risk factors earlier this year, acknowledging that extreme weather events, often linked to climate change, are becoming increasingly important to buyers.

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According to a Zillow survey, climate risks now play a role in the decisions of 80% of home buyers, and a recent report from Realtor.com found that nearly 45% of U.S. homes are at moderate to extreme risk of damage from environmental threats.

For homes in Richmond, climate risk comes primarily from high temperatures and strong winds. First Street — Zillow's climate risk data partner — gives most Richmond homes a score of 7 or 8 out of 10 for extreme heat risk.

This assessment is based on forecasts of days with “feels like” temperatures of 107 degrees Fahrenheit or higher. Richmond experienced seven such days this year alone, but First Street expects these extreme heat days to increase by 129% over the next 30 years.

Extreme heat can be challenging for homes as it overwhelms HVAC systems and potentially damages roofs, decks and retaining walls. Additionally, very high temperatures can impact not only the durability of homes, but also long-term maintenance costs, as First Street points out.

Homes in Richmond are also particularly vulnerable to high winds, with First Street giving these properties a rating of 6 out of 10. Strong wind events in the area are often caused by hurricanes and tropical storms, which produce winds of 51 miles per hour or greater.

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Forecasts show most homes in Richmond could experience severe storms in the next three decades – a sharp increase from the current risk of just 1%. Local structural challenges presented by such storms highlight the importance of preparing homes for this increasing threat.

Homes in certain flood-prone neighborhoods, such as Shockoe Bottom, Virginia, are at significantly higher risk of flooding. Shockoe Bottom's vulnerability stems from its low elevation and proximity to the James River, making it vulnerable to rising water during severe storms or heavy rainfall.

Still, flood insurance coverage remains low in Virginia — about 3% of homes statewide have this type of insurance, although recent flooding from Hurricane Helene damaged about 126,000 homes, according to a state report.

Zillow's new climate risk feature isn't just about identifying potential threats; It also helps homeowners and buyers plan for rising insurance costs. In recent years, premiums have risen significantly, particularly in areas at risk of climate change.

According to a Wharton School study, home insurance costs in high-risk areas rose 33% between 2020 and 2023, forcing many buyers to rethink their budgets.

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