By PARIS APODACA
Excerpt:
A new climate-related metric advanced by a company linked to private equity firms is quietly subverting the U.S. housing market, a new report claims.
Major online real estate platforms such as Zillow, Relator.com, Homes.com and Redfin all have featured predictive climate-risk scores, according to a July report from the American Energy Institute and Consumers’ Research first shared with the Daily Caller News Foundation. The scores, developed by private company First Street, can often directly contrast with the Federal Emergency Management Agency’s (FEMA) official flood maps and determinations.
“For most American families, a home is their single largest financial asset and the primary vehicle for building generational wealth,” the report claims.
“These scores lack statutory authority, formal appeals, and frequently contradict FEMA maps,” it adds. “A documented $6.2 million case study shows buyer interest collapsing and prices dropping after a private score assigned a 9/10 flood risk to a FEMA Zone X (minimal risk) property.” (RELATED: Blackstone Stock Nosedives As Trump Comes For Their Real Estate Cash Grab)
Consumers’ Research asked multiple federal regulators including congress to investigate First Street over concerns about its impact on residential real estate, according to the report.
“BlackRock, Vanguard, and State Street hold 19 to 25% combined ownership stakes in the parent companies distributing these scores,” the report added.
First Street did not immediately respond to the DCNF’s request for comment.
🔺A growing region in the U.S. that’s currently home to more than 100 million Americans will reach temperatures as high as 125°F (52°C) over the next three decades.
That’s according to a new report from non-profit climate risk research group First Street.
— FORTUNE (@FortuneMagazine) August 15, 2022
