Potential homebuyers, take note. Just over a year after introducing climate risk scores, Zillow has removed the feature from more than 1 million property listings—following complaints from real estate agents that the data hurt their sales.
Zillow initially added the climate risk scores in September 2024, citing that over 80% of homebuyers consider climate risks when purchasing a property. However, last month, after objections from the California Regional Multiple Listing Service (CRMLS), Zillow removed the scores. Instead, a less prominent link now directs users to climate risk data provided by First Street, the analytics startup behind the scoring system.
"When buyers lack clear climate risk information, they’re making the biggest financial decision of their lives blindly," said Matthew Eby, a First Street spokesperson, via email. "The risk doesn’t disappear—it just shifts from a pre-purchase consideration to a post-purchase liability."
First Street’s climate risk scores first appeared on Realtor.com in 2020 and remain visible there, as well as on Redfin and Homes.com. The New York-based startup has raised over $50 million from investors including General Catalyst, Congruent Ventures, and Galvanize Climate Solutions, according to PitchBook.
CRMLS CEO Art Carter told The New York Times that displaying flood probabilities for specific homes could "significantly impact perceived attractiveness." He also questioned First Street’s data accuracy, stating that areas without floods in the past 40–50 years were unlikely to face them in the next five.
This isn’t the first pushback from real estate agents. Last year, a Massachusetts agent told The Boston Globe that the scores "created concerns buyers wouldn’t have otherwise had."
First Street defended its methodology. "Our models are built on transparent, peer-reviewed science and continuously validated against real-world outcomes," Eby said. He noted that during Los Angeles wildfires, First Street’s maps flagged over 90% of ultimately destroyed homes as "high" or "extreme" risk—outperforming California’s official CalFire hazard maps.
Official hazard maps have faced criticism for being outdated or underestimating risks. A Louisiana State University analysis found that properties facing a 1% annual flood risk (a "100-year flood") were nearly double the number shown in FEMA’s flood maps, which determine mandatory flood insurance requirements.
The real estate and insurance industries continue grappling with climate-driven weather risks. "A home that burns or floods is worthless," wrote Peter Gadiosh, a partner at proptech VC firm Fifth Wall, four years ago. "Insurers are now engaging on these issues at unprecedented levels."
While investors, insurers, and cities may still rely on First Street’s data, Zillow’s reversal makes it harder for consumers to access this information—tilting the market back toward less transparency.