In a significant shift for the real estate market, Zillow has removed climate risk scores from over a million property listings, just over a year after introducing the feature. The decision follows widespread complaints from real estate agents who argued that the readily available data was causing them to lose sales.
Zillow initially integrated climate risk data from First Street, a climate risk analytics startup, in September 2024. At the time, the company stated that more than 80% of prospective buyers consider climate risks when purchasing a new home, highlighting the importance of such information.
However, last month, following objections from organizations like the California Regional Multiple Listing Service (CRMLS), Zillow quietly replaced the direct display of climate scores with a subtle link to First Street’s records. This change means homebuyers must now actively seek out the data that was once prominently featured on listings.
“When buyers lack access to clear climate-risk information, they make the biggest financial decision of their lives while flying blind,” First Street spokesperson Matthew Eby told TechCrunch. “The risk doesn’t go away; it just moves from a pre-purchase decision into a post-purchase liability.”
While Zillow has removed the direct scores, First Street’s climate risk data remains available on other major real estate platforms, including Realtor.com (where it first appeared in 2020), Redfin, and Homes.com. The New York-based startup, which provides this comprehensive data, has raised over $50 million from investors such as General Catalyst, Congruent Ventures, and Galvanize Climate Solutions.
Art Carter, CEO of CRMLS, explained his organization’s stance to The New York Times, stating that “displaying the probability of a specific home flooding this year or within the next five years can have a significant impact on the perceived desirability of that property.” Carter also raised concerns about the accuracy of First Street’s data, questioning the likelihood of flooding in areas that haven’t experienced such events in 40 to 50 years.
This isn't the first time real estate agents have voiced objections to climate risk scores. Last year, when Zillow first introduced the feature, a Massachusetts agent told the Boston Globe that the scores were “putting thoughts in people’s minds about my listing that normally wouldn’t be there.”
First Street has consistently defended the integrity of its data. “Our models are built on transparent, peer-reviewed science and are continuously validated against real-world outcomes,” Eby affirmed. He cited the Los Angeles wildfires within the CRMLS coverage area as an example, where First Street’s maps identified over 90% of ultimately burned homes as being at severe or extreme risk, significantly outperforming official state hazard maps from CalFire.
Indeed, official hazard maps have faced criticism in recent years for being outdated or underestimating a property’s true level of risk. An analysis by Louisiana State University revealed that nearly twice as many properties carry a 1% annual risk of flooding (a so-called 100-year flood) than are listed on Federal Emergency Management Agency (FEMA) flood maps, which are used to determine flood insurance requirements.
The real estate and insurance industries are increasingly grappling with the escalating risks posed by climate change. As Peter Gajdoš, a partner at proptech venture capital firm Fifth Wall, wrote for TechCrunch four years ago, “If buildings are on fire or underwater, they don’t have much value.” He noted an unprecedented interest from large insurers in these discussions.
Investors, insurers, and cities are expected to continue relying on data from companies like First Street to assess climate risks. By initially offering homebuyers direct access to this crucial data, Zillow had helped level the playing field. However, due to objections from real estate agents, consumers now face an additional hurdle in accessing vital information for one of life’s most significant financial decisions.
