Zillow Retires Its Home Listing Climate Risk Scores
When Zillow first introduced First Street’s climate risk data on for-sale listings in the U.S. in September 2024, the company explained that more than 80% of buyers considered climate risks when purchasing a home. After a storm of industry protest, the scores have been blown off Zillow’s site.
The New York Times reported that complaints from the California Regional Multiple Listing Service (CRMLS), funded by real estate brokers and agents, caused the change.
“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,” Art Carter, CRMLS CEO, told the Times.
That isn’t a surprise. Climate change effects, especially for properties in high-risk locations, have driven rapidly growing insurance rates and multiple large-scale disasters. GlobeSt.com has reached out to CRMLS for additional comments.
“When we saw entire neighborhoods with a 50 percent probability of the home flooding this year and a 99 percent probability of the home flooding in the next five years, especially in areas that haven’t flooded in the last 40 to 50 years, we grew very suspicious,” Carter said to the Times.
A National Bureau of Economic Research working paper from November 2024, in collaboration with data from listing service Redfin and First Street Foundation, the data provider for Zillow’s former service, found that flood risk information “influences every stage of the house-buying process” and that individuals will make trade-offs between property amenities and lower flood risk. About 83% of all buyers considered at least one climate risk factor and 49% said the results were very or extremely impactful.
In September 2024, Zillow Senior Population Scientist Manny Garcia said, “Climate risks impact where most prospective buyers shop for a home. While all generations juggle trade-offs like budget, floor plans and commute times, younger home shoppers are more likely to face another consideration: They want to know if their home will be safe from rising waters, extreme temperatures and wildfires.” .
Now, just over a year later, Zillow has taken down the scores. The company sent a statement to the Times, saying that it remains committed to providing consumers with information to help them make their choices. Reportedly, it maintains links to the First Street Foundation data. Other sites like Redfin, Realtor.com and Homes.com display similar data.
In a separate story, the Times reported that First Street has argued that almost twice as many properties as on the federal government’s lists may be potentially subject to flood risk.
Source: GlobeSt/ALM