Zillow Eliminates Climate Risk Assessments Following Agent Feedback

Zillow has decided to discontinue its climate risk evaluation feature, which had been in place for only one year. This action comes after real estate agents expressed that the information was not only misleading but also detrimental to sales outcomes.

Instead of completely removing climate risk data, Zillow now presents a minimal link to information offered by First Street, the original data provider for these assessments. Representatives from First Street are not pleased with this approach, with spokesperson Matthew Eby explaining that the inherent risks persist—they merely transition from a decision-making point before purchase to a potential concern afterward. Nonetheless, First Street's evaluations are still available on sites like Redfin, Realtor.com, and Homes.com.

The decision by Zillow has been positively received by the California Regional Multiple Listing Service (CRMLS), a critical tool predominantly utilized by industry specialists. CRMLS's leader, Art Carter, conveyed to The New York Times that showing the likelihood of a home experiencing flooding within the upcoming year or five years can substantially alter how attractive that property seems to potential buyers.

While supporting Zillow’s move, Carter also cast doubt on the robustness of First Street's data, indicating skepticism about the accuracy of predicting floods in areas untouched by such incidents for decades. First Street countered by stating that their models are developed based on open, peer-reviewed research and continually checked against real-life evidence.

Controversy and Consumer Interest

Zillow’s climate risk indicators have stirred debate since the program’s inception in 2024, particularly causing friction with real estate professionals. An agent remarked to The Boston Globe that these assessments inadvertently embedded negative perceptions about their listings. Yet, with over 80% of potential homebuyers considering environmental threats during their search, these considerations are already prevalent.

First Street argues that their climate scoring system holds significant value for consumers, highlighting that their mapping correctly estimated risks for over 90% of homes affected by the Los Angeles wildfires. Additionally, they emphasize that their data has notably outperformed California's official hazard diagrams managed by CalFire.

Engadget has reached out for Zillow's perspective on this decision and promises updates upon receiving a response.