How Climate Risk Technology is Shaping the Future of Home Buying in Michigan

As climate change continues to accelerate, homeowners across the country, including here in Michigan, are being forced to think differently about the risks associated with owning property. While major storms, floods, and wildfires are typically thought of as issues affecting coastal states, the reality is that climate risks can, and will, increasingly impact homebuyers everywhere, including in areas not previously considered vulnerable.

Take, for example, what we’re seeing in the aftermath of Hurricane Helene. While insured losses have reached over $6 billion, the far greater issue lies in the uninsured losses, particularly because most of the impacted homes were not in designated flood zones. This is exactly why new risk-assessment technology is so important. Tools like the climate risk data from First Street are giving homeowners and buyers a clearer picture of the risks their homes face, both now and decades into the future.

The Rise of Climate Risk Data in Real Estate

First Street recently launched a suite of climate risk data that is now integrated into every for-sale property listed on Zillow. This tool provides a property-specific climate risk score for a variety of hazards, including flood, fire, wind, air, and heat. What’s particularly valuable about this data is its ability to project risks 15 and 30 years into the future, offering Michigan homebuyers a crucial glimpse into how climate change could affect their properties in the years to come.

For many, this may feel like a shift in the real estate market, but it’s a necessary one. As buyers become more aware of climate risks, they are factoring this information into their purchase decisions. In fact, more than 80% of buyers now consider climate risk when buying a home, with flood risk ranking as the highest concern, followed by fire.

At Nvrrete, we believe that arming our clients with accurate and forward-looking data is essential. As climate risks evolve, so must the way we think about homeownership. For Michigan buyers, this data can help ensure that homes are not only desirable but also sustainable investments that can weather the changing climate.

Michigan’s Climate Risks: What to Consider

You might be asking: What does this mean for Michigan? Our state is no stranger to severe weather, from heavy snowfalls and ice storms to flooding in the spring and summer. While Michigan’s real estate market may not see the immediate, dramatic climate effects faced by coastal states, the long-term risks are significant, especially regarding flooding.

Many homeowners in Michigan, particularly in areas like Metro Detroit, have historically thought they were safe from flooding because they weren’t located in a FEMA-designated flood zone. However, as we’ve seen with First Street’s updated flood risk maps, that assumption may not hold true. Even minor storms are becoming more intense due to climate change, which means areas that previously experienced minimal flood risk could become more vulnerable in the coming decades.

For homeowners in Michigan, it’s critical to think about not only the risks posed by flooding today but also how those risks might evolve over time. At Nvrrete, we help our clients plan for the future by incorporating climate risk into the custom home designs we create. By staying ahead of these risks, we can ensure that homes are built to withstand changing conditions, whether that means choosing higher ground, designing effective drainage systems, or selecting materials and building techniques that are resilient to moisture and severe weather.

Insurance and Home Value Impacts

Climate risk scores are also changing the way we think about home values and insurance. As more buyers consult these risk assessments during the home-buying process, the cost of insurance will increasingly factor into home prices. For example, homes with higher flood or wildfire risk will likely face increased insurance premiums. This, in turn, could affect the property’s overall value as the costs of insuring and maintaining the home rise.

It’s important for Michigan homebuyers to consider these potential costs when purchasing a property. While Michigan may not be at the same level of risk as some southern or western states, the effects of climate change are still real, and they’re only expected to grow over time.

At Nvrrete, we take a proactive approach by helping our clients understand the full picture. Whether you’re building a new custom home or looking to renovate your current property, we work with you to assess climate risk, incorporate resilient design features, and ensure that your investment is protected both now and in the future. By staying informed and prepared, Michigan homeowners can avoid potential pitfalls and make smarter, more sustainable choices.

Building for the Future with Nvrrete

As climate risk data becomes more central to the real estate market, Michigan homeowners must adapt to these new realities. Fortunately, new technology like First Street’s risk assessments provides a clearer path forward. Here at Nvrrete, we help you navigate these changes by integrating climate risk awareness into every stage of the home-building process.

Whether it’s building in areas less susceptible to flooding, using materials that stand up to extreme weather, or planning for future climate scenarios, Nvrrete is committed to creating homes that are both beautiful and resilient. We understand that your home is one of your most significant investments, and we want to ensure that it stands the test of time—no matter what challenges climate change brings.

As you consider building or buying your next home in Michigan, remember that the risks posed by climate change are real, but they can be managed. By taking the right steps today, you can build a home that is ready for the future, a place where you and your family can live comfortably, safely, and sustainably for years to come.