Realtor.com adds climate change risks to listings amid fears extreme weather is 'destroying the American dream of homeownership'

Realtor.com said this week it would add new climate change risks to listings - so buyers can avoid buying a home in an area at risk of flooding or a wildfire. 

The home listing company said it would now offer heat, wind and air quality information for each property, since those factors will pose a risk to almost half of all US homes in 2024.

It comes after this month finance guru Suze Orman warned about the effects of climate change on soaring property insurance premiums. She was quoted $28,000 for her 2,100-square-foot Florida condo.

Those concerns are warranted - insurers have hiked premiums after suffering record losses and are even pulling out of certain more risk-prone markets.

As a result, the national average price of home insurance shot up by 23 percent to $1,759 a year between January 2023 and 2024, figures from Bankrate show.

Finance guru Suze Orman (pictured) has warned the effect of climate change on soaring property insurance premiums is destroying the American dream of homeownership

As it stands, listings currently show a property's fire and flood risks. Pictured is flooding during high tide in Hampton, New Hampshire

Realtor.com is an online real estate marketplace with listings of properties for sale around the country

Previously, listings on Realtor.com only showed a property's fire and flood risks.

This year, extreme heat will affect 32.5 percent of US homes valued at a total of $13.6 trillion, according to data cited by Realtor.com. Meanwhile, extreme wind and air quality will impact about 18 and 9 percent of homes respectively.

For all properties, the real estate listing site will now convey the risks associated with each factor using a scale of 1 to 10. It will also offer maps illustrating their exposure.

For each type of risk, prospective buyers can also see the expected change over the next 15 or 30 years - the duration of a mortgage.

Miami has the highest total value of homes at risk to severe or extreme heat. Other cities at risk include Houston, Tucson and New Orleans.

New Orleans and nearby Baton Rouge, also on the Gulf Coast, were also highly exposed to extreme wind.

San Francisco is among the most vulnerable to poor air quality. It is joined by a handful of other cities throughout California and Washington State.

'It was imperative for us to deliver more robust and comprehensive climate risk information to our users,' said Mausam Bhatt, chief product and technology officer at Realtor.com.

Realtor.com said it would now offer heat, wind and air quality information for each property listed for sale on its site

A view shows a burning house as the Fairview Fire near Hemet, California, U.S., September 5, 2022. WIldfires have pushed up costs for insurers - who have put up premiums for Americans

'It's important for people to fully understand the climate risks that a home faces not only in the present, but in the future, so they can make the most informed decision,' he added.

The data Realtor.com will display to users is supplied by climate analytics firm First Street. 

Its measure 'Heat Factor' allows users to see how many days the property area experiences a heat index at or above the local definition of a 'hot day.'

'Wind Factor' is a measure of the likelihood a property will experience wind gusts of greater that 50 mph.

'Air Factor' reveals the expected number of poor air quality days.

Last month Suze Orman told DailyMail.com how she had given up on cover for her own 2,100-square-foot, ocean-side condo in Florida after she was quoted $28,000 a year by her insurer.

Orman said: 'Climate change is going to make a big difference in people's desire to own their own home.

'Look at what's happening in Southern California. Look at the devastating hurricanes that are coming to places where hurricanes really weren't so prevalent before. I think people start to get a little frayed, especially with interest rates on mortgages being where they are.'

Orman claims that Americans will soon have little interest in owning homes as insurance costs make them too unsustainable to maintain. In turn this could cause real estate prices to fall.