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Zillow drops climate risk scores after agents complained of lost sales
Zillow has removed climate risk scores from over 1 million listings after complaints from real estate agents about lost sales. Originally added in September 2024, the scores aimed to inform buyers, with more than 80% citing climate risk as a factor. The decision raises concerns over transparency as buyers now must navigate climate risk data through external links instead.
Key points
- Zillow introduced climate risk scores in September 2024, aimed at informing homebuyers.
- Over 80% of buyers consider climate risks in their decisions, according to Zillow.
- Due to complaints from agents regarding sales losses, Zillow removed the scores last month.
- First Street, the climate risk data provider, suggests that without direct risk information, buyers face hidden liabilities.
- Criticism arose over the accuracy of First Street's data and its potential impact on property desirability.
- Similar climate risk scores are still available on other platforms like Realtor.com and Redfin.
- The issue reflects broader concerns in real estate and insurance industries about the impact of climate change.
Why it matters
- The move to remove climate risk data aligns with ongoing debates in real estate about transparency versus marketability.
- This incident recalls previous disputes over risk disclosures in real estate, particularly after natural disasters.
- As climate change impacts intensify, understanding property risks has become increasingly crucial to buyers and insurers alike.
- In 2025, trends show increased investor interest in tools for measuring climate risks, pushing for better data accessibility.
Zillow's removal of climate risk scores underscores the tension between informing buyers and protecting agent sales; without transparent risk data, buyers may unwittingly take on significant liabilities in an increasingly climate-affected market.