Understanding Zillow’s Climate-Risk Score Removal: Market Pressures vs. Consumer Transparency

Beginning in September 2024, Zillow displayed climate-risk scores generated by First Street, a New York–based startup that analyzes property-level exposure to hazards such as floods, fires, wind, air quality, and heat. Using historical and publicly available data, First Street aimed to give homebuyers a clearer understanding of the environmental risks tied to each property.

However, just over a year after launching the feature, Zillow removed the scores from more than one million listings. The change followed significant pushback from the California Regional Multiple Listing Service (CRMLS) and real estate agents across several states. Some agents argued that the risk labels introduced concerns that buyers wouldn’t otherwise have had, potentially harming sales. Although Zillow no longer shows the scores directly, it now provides a link directing users to First Street’s external site, ultimately making climate-risk information less prominent and less transparent than before.

The removal of Zillow’s climate-risk scores genuinely surprised me because they offered a level of transparency that homebuyers rarely had access to. When exploring First Street’s website, it’s clear their analysis goes far beyond a simple 1–10 rating. They provide risk maps, histories of past weather-related events, projected insurance cost changes, and other meaningful data that help buyers understand long-term exposure. It’s reassuring that the information still exists, but disappointing that it has been reduced to a link that many buyers may overlook.

I strongly believe Zillow should prioritize transparency for buyers over real-estate agents’ sales concerns. As Mathew Eby pointed out, “The risk doesn’t go away; it just moves from a pre-purchase decision into a post-purchase liability.” That statement captures the core issue. Investors, insurers, and cities already use climate-risk analytics to make decisions, and insurance companies often raise premiums or withdraw coverage entirely when properties become too risky. We’ve already seen lawsuits from Los Angeles homeowners whose wildfire-related claims were denied after the Eaton and Palisade fires. While some question the accuracy of climate-risk models, First Street’s analysis identified over 90% of the homes that eventually burned — suggesting the models are more reliable than critics assume.

Ultimately, this feels like a battle between real-estate agents and the average homebuyer. As the article notes, “In offering homebuyers’ access to the same data, Zillow helped level the playing field. But thanks to the objections of real estate agents, consumers have one more hoop to jump through.”, and it’s a hoop they shouldn’t have to deal with. In an era where climate risks are increasing, access to clear information is essential for making responsible financial decisions. For that reason, Zillow should reinstate First Street’s climate-risk data directly on listings rather than hiding it behind a link.

References: 

912 LIGHTHOUSE DR, NORTH PALM BEACH, FL 33408 | Climate Risk Report | First Street

LA homeowners are suing insurance companies for not covering damages from the fires : NPR

Zillow drops climate risk scores after agents complained of lost sales | TechCrunch