When the Federal Reserve asks America’s largest banks to stress-test their portfolios in the event of a climate disaster, what tools should they turn to? Which of today’s Zoomtowns suffering a housing affordability hangover may actually become tomorrow’s climate resilient boomtowns? And will Florida’s retirement communities retain their value as insurance dries up, or are there better bets for buying a home in the coming decade(s)? Climate Alpha was founded to answer these questions and more. To do so, we’ve developed a suite of technologies to more accurately gauge the risks, vulnerabilities, and readiness of American communities for disruptions of all kinds from rising interests to rising sea levels – and to sift for opportunities to maintain the American Dream of appreciating home values in the years ahead.
Inspired by Renaissance Technologies’ pioneering machine learning techniques that power its world-beating Medallion fund, our models identify signals pointing to investable assets that will outperform today’s real estate portfolios. And just as companies such as Palantir have become known for harnessing the widening ocean of unstructured data, our ‘wide data’ approach integrates thousands of datasets to establish correlations that give us greater confidence in our property market forecasts.
Homebuilders, real estate managers, and financial investors are using Climate Alpha to determine where to build, which assets to hold or dispose, what REITs to invest in, and many other uses you read about on our customer case study page. At the core of our platform is a patent-pending Scenario Forecaster™ using neural networks to discover hidden correlations between range of socio-economic and market indicators before blending them with climate-related variables to generate our unique Climate Price™ valuation forecasts covering all property types (residential, commercial, industrial, and agricultural) across 40,000 US Zip codes and Canada.
Given the complex and uncertain interplay of factors such as interest rates, tax policies, infrastructure spending, and migration patterns —not to mention climate disasters — our tools enable customers to test their assumptions under multiple scenarios such as the UN IPCC’s main RCP/SSP pathways), as well user-generated scenarios you can construct live on the Scenario Forecaster. Each location is also assigned a unique Resilience Index™ score that can be used by companies reporting their ESG metrics as well as towns and cities as a dashboard to prioritize their climate adaptation investments.
And for those seeking to compare markets and invest in land or property, our easy-to-use Alpha Finder™ platform allows you to screen and compare every US zip code according to nearly one hundred filters ranging from wage growth to clean air and crime rates to fresh water supply to find and rank the locations that best meet your criteria.
Climate Alpha’s suite of tools co-exist and work together on a single integrated cloud-based SaaS platform available anywhere, anytime – serving the world’s largest financial institutions as well as individuals and families. We’re here to help you move from climate risk to climate opportunity.