Zillow removes climate risk scores after agents complain about sales

2. Big tech

It's a good thing we got that whole global catastrophe thing sorted.

Zillow has dropped its climate risk score program just one year after it started, according to a report by TechCrunch. It has removed climate risk scores from over one million listings after real estate agents complained that the data was misleading and leading to lost sales.

In their place, listings now feature a small link to data sourced from climate risk startup First Street, which is the organization that provided the original assessment. The startup isn't too happy about this move, with spokesperson Matthew Eby telling TechCrunch that "the risk doesn't go away; it just moves from a pre-purchase decision into a post-purchase liability." First Street's climate scores still appear on listings from Redfin, Realtor.com and Homes.com.

The California Regional Multiple Listing Service (CRMLS) is pleased with Zillow's decision, as this real estate database is used primarily by industry professionals. CRMLS CEO Art Carter told The New York Times 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 questioned the validity of First Street's data, saying that areas that haven't flooded in 40 or 50 years were not likely to flood in the next five. First Street responded by saying "our models are built on transparent, peer-reviewed science and are continuously validated against real-world outcomes."

Zillow's climate risk score labels have been controversial since the company launched the program in 2024, particularly among real estate agents. One agent told The Boston Globe last year that they were "putting thoughts in people’s minds about my listing that normally wouldn’t be there." More than 80 percent of prospective buyers consider climate risks when shopping for a new home so, yeah, those thoughts are already in there.

First Street maintains that its climate risk scores are extremely useful for consumers, noting that its maps correctly identified risk for over 90 percent of the homes that burned during the Los Angeles wildfires. The company says its internal maps have been "significantly outperforming CalFire's official state hazard maps."

Engadget has reached out to Zillow to ask about its reasoning here. We will update this post when we hear back.

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