The rise in the severity and frequency of extreme weather events and natural disasters is impacting real estate markets across the country. Higher temperatures, flooding, wildfires, droughts, seasonal storms, etc., are damaging homes and affecting communities at increasing rates. The climate risk profile of certain areas is changing, causing shifts in housing preferences, buyer demand, property values, resale ability, financing options and insurance rates.
As mainstream awareness of these climate-related risks grows, consumers are increasingly factoring sustainability and green features into their real estate purchasing decisions.
According to the 2022 REALTORS® and Sustainability Report – Residential, agents and brokers found that 34% of consumers were very or somewhat concerned about the impact of extreme weather and climate change on the market, and 51% were somewhat or very interested in sustainability.
Widespread consumer interest in these issues makes it crucial for real estate professionals to be knowledgeable on topics such as weather- and environmental-related risks in their local market, sustainability, energy efficiency and green home features.
Here are some tools and resources that will help you better understand these issues and address the questions and concerns of your clients.
- “Intro to Sustainability & Resiliency: What REALTORS® Need to Know” is a one-hour course available at no cost to members of the National Association of REALTORS® (NAR) at learning.realtor. This course provides a solid overview of the issues and highlights the importance of sustainability in real estate.
- The 2022 REALTORS® and Sustainability Report – Residential provides a statistical snapshot of agent perspectives on sustainability issues in the industry, gathered from a survey of NAR members.
- NAR’s Green Designation is designed for agents who want to learn how to effectively market green properties and confidently serve clients interested in energy efficiency, sustainability and green home capabilities. The Green Designation coursework has been revamped and restructured, and can be completed in a classroom setting or in a self-paced online format. You can learn more about the education at https://green.realtor.
- The REALTORS® Property Resource® (RPR®) includes a ClimateCheck® tool that agents can use to help their buyer-clients understand the current and future climate-related risks of a property they are considering purchasing. The ClimateCheck® tool analyzes data from local and national sources to rate a property’s future risk of climate change-related hazards (drought, fire, storm, heat and flood) and assigns a rating from one to 100, with 100 representing the highest risk. Ratings are displayed in a climate-change risk snapshot in the Additional Resources section of any RPR® Property Details page. RPR® is free for all NAR members.
Research shows that sustainability matters to consumers. Real estate agents who understand climate risks and stay up to date on sustainability and resilience strategies in their markets will be better prepared to help their clients make informed purchase decisions.
Learn more about CRD at https://crd.realtor/.
