Source: open.substack.com · last verified 2026-07-15

America’s housing market is being influenced by private climate risk scores, which are being displayed on major real estate websites. These scores, created by a company called First Street, are not government-approved and can conflict with FEMA flood maps. Homeowners have little to no recourse if they believe a score is inaccurate, and these scores can reduce demand and market value of properties.

The use of these scores raises questions about who is funding First Street, how the scores are developed and validated, and what consumer protections exist for homeowners. The largest institutional shareholders of real estate platforms, including BlackRock, Vanguard, and State Street, have been supportive of ESG and Net Zero investment initiatives, which has led to concerns about their influence on the housing market.

Congress is being called to investigate the use of private climate risk scores and their impact on the housing market. The investigation should examine the development and validation of these scores, as well as the discussions between platform operators and climate-risk providers before these products were integrated.

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