Zillow Removes Climate Risk Scores from Listings After Complaints
Prospective homebuyers may be disappointed to learn that Zillow has removed climate risk scores from more than 1 million listings, just over a year after adding them. The decision came after real estate agents raised concerns that the information was negatively impacting sales.
Zillow initially introduced climate risk scores to its site in September 2024, citing research that showed more than 80% of buyers consider climate risks when purchasing a new home. However, last month, the California Regional Multiple Listing Service (CRMLS) objected to the scores, leading Zillow to take action.
Instead of displaying the climate scores, Zillow now includes a subtle link to First Street, the climate risk analytics startup that provides the data. First Street’s spokesperson, Matthew Eby, emphasized the importance of clear climate-risk information for buyers, stating that without it, buyers are making significant financial decisions without proper awareness of potential risks.
While Zillow has removed the climate risk scores, other real estate websites like Realtor.com, Redfin, and Homes.com still display them. First Street, based in New York, has received significant investment from firms like General Catalyst and Congruent Ventures.
CRMLS CEO Art Carter expressed concerns about the impact of displaying flood probabilities on property desirability. He questioned the accuracy of First Street’s data, suggesting that areas that have not flooded in decades may not be at risk in the near future.
Despite objections from some real estate agents, First Street defended the reliability of its data, highlighting its accuracy during events like the Los Angeles wildfires. The startup’s models are based on peer-reviewed science and are continuously validated against real-world outcomes.
Official hazard maps have faced criticism for being outdated or underestimating risk levels, leading to discrepancies in flood insurance requirements. The real estate and insurance industries are increasingly turning to data from companies like First Street to assess climate risks amid worsening weather patterns caused by climate change.
Investors, insurers, and cities are likely to continue relying on climate risk data to make informed decisions. Zillow’s initial inclusion of climate risk scores aimed to provide homebuyers with access to important information, but the removal of these scores following objections highlights the challenges of integrating climate risk data into the real estate market.
