Zillow Drops Climate Risk Scores After Agents Complained of Lost Sales

Zillow Removes Climate Risk Scores from Listings

Homebuyers seeking climate safety insights may need to look elsewhere. Zillow has removed climate risk scores from over one million listings, less than a year after introducing the feature. The decision comes after real estate agents raised concerns that visible risk ratings were negatively affecting property sales.

Zillow Drops Climate Risk Scores After Agents Complained of Lost Sales

Credits:Apu Gomes / Getty Images

Why Zillow Added Climate Scores

Zillow first launched its climate risk data in September 2024, citing surveys that showed more than 80% of buyers consider climate factors when choosing a home. The feature aimed to provide transparency on flood risks, wildfire probabilities, and other environmental hazards. Early reports suggested that buyers appreciated the clarity, but some real estate professionals argued it hindered sales.

Agent Complaints Trigger Change

The California Regional Multiple Listing Service (CRMLS) voiced strong objections to the scores last month. According to CRMLS CEO Art Carter, publicly displaying the likelihood of flooding or other climate events can drastically influence how a property is perceived. These concerns ultimately prompted Zillow to pull the data from its site.

First Street Data Still Accessible

Although Zillow removed the scores, it now provides a subtle link to First Street, the climate risk analytics company behind the data. Matthew Eby, a First Street spokesperson, emphasized that hiding the information doesn’t eliminate risk—it simply shifts it to post-purchase concerns, potentially leaving homeowners unprepared.

First Street’s Market Presence

First Street has been offering climate risk scores on Realtor.com since 2020 and continues to appear on platforms like Redfin and Homes.com. The startup has secured more than $50 million in funding from investors including General Catalyst, Congruent Ventures, and Galvanize Climate Solutions, according to PitchBook.

Impact on Homebuyers

With Zillow’s scores removed, homebuyers must rely on external sources to evaluate climate risk. Experts warn that skipping this step could lead to unexpected expenses and property damage in regions prone to floods, wildfires, or other hazards. Transparency advocates argue that buyers deserve clear risk information before committing to a purchase.

Industry Reactions

The move has sparked debate within the real estate industry. Agents support Zillow’s decision, citing sales impact concerns, while climate transparency advocates warn it sets a troubling precedent. The tension highlights the broader challenge of balancing business interests with environmental accountability.

Zillow’s Next Steps

Zillow hasn’t indicated whether it will fully reinstate climate risk scores in the future. For now, the company emphasizes directing buyers to First Street’s detailed reports, offering a compromise between agent concerns and the need for informed decision-making.

Buyer Guidance

Experts recommend prospective homeowners consult multiple sources when evaluating climate risk. Tools from First Street, Realtor.com, Redfin, and Homes.com can provide crucial insights. Understanding environmental hazards before purchase remains essential for financial security and long-term planning.

What This Means for the Market

Removing climate scores from Zillow underscores the tension between sales performance and transparency. Homebuyers may face additional research responsibilities, while the industry continues to debate how environmental data should be presented without influencing property values unfairly.

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