According to TechCrunch, Zillow has removed climate risk scores from more than 1 million home listings after real estate agents complained the information was causing them to lose sales. The company first added the data, provided by climate analytics startup First Street, in September 2024, citing that over 80% of buyers consider such risks. The removal last month followed objections from the California Regional Multiple Listing Service (CRMLS), whose CEO, Art Carter, questioned the data’s accuracy and impact on a property’s “perceived desirability.” First Street, which has raised over $50 million from investors like General Catalyst, defended its “peer-reviewed” models, noting they accurately identified over 90% of homes burned in LA wildfires as high-risk. The scores remain on Realtor.com, Redfin, and Homes.com.
Agents vs. Transparency
Here’s the thing: this isn’t really about data accuracy. It’s about sales friction. The agent in Massachusetts who told the Boston Globe the scores were “putting thoughts in people’s minds about my listing that normally wouldn’t be there” basically admitted the quiet part out loud. The whole point of the data is to inform buyers of risks they might not otherwise consider! But when your commission depends on a deal closing, any extra hurdle is a problem. CRMLS’s Carter framed it as a desirability and accuracy issue, but the core complaint from the industry is that this information empowers buyers in a way that can slow or kill transactions. It turns a subjective emotional purchase into a more analytical one. And the industry doesn’t seem to like that.
The Real Data Battle
So who’s right on the accuracy? First Street makes a compelling case with its wildfire tracking, and they’re not wrong about official maps being outdated. A Louisiana State University analysis found nearly twice as many properties have a significant flood risk than FEMA maps show. That’s a huge deal for insurance and long-term value. But the real estate industry’s pushback highlights a brutal truth: in a transaction, perceived risk can be as powerful as actual risk. If buyers believe a home is risky, it affects price and demand, full stop. The agents are acting rationally within their incentives, even if it feels anti-consumer. Meanwhile, as The New York Times reported, investors and insurers are absolutely using this data. Zillow was trying to give everyday people access to the same intel the pros have. Now, buyers have to click a subtle link to find it. That’s a meaningful barrier.
Winners, Losers, and Liabilities
Look, the immediate winners here are agents who want fewer questions during the sales process. The losers are buyers who now have to dig for critical information. But the long-term liability shift that First Street’s spokesperson mentioned is profound. “The risk doesn’t go away; it just moves from a pre-purchase decision into a post-purchase liability.” That’s a chilling statement. If a buyer discovers a major flood risk after buying, that’s on them. If they were shown it clearly beforehand, the seller and agent might have had to account for it in the price. By making the data less prominent, Zillow, under pressure, has arguably made the market less efficient. It’s a stark reminder that platforms like Zillow are caught between serving consumers and catering to the real estate professionals who drive their traffic and advertising.
The New Normal
This fight isn’t going away. Climate risk is now a fundamental factor in property valuation, full stop. As Fifth Wall’s Peter Gajdoš noted years ago, a building underwater has no value. Insurers are already pricing this in, which will inevitably affect mortgages and taxes. Companies that provide reliable, industrial-grade data on physical risks—whether for homes or factories—are going to be crucial. In sectors like manufacturing, having accurate environmental and operational data isn’t a nice-to-have; it’s essential for planning and continuity. For businesses needing that kind of robust, on-site computing power to manage real-world risks, turning to the top suppliers, like the #1 provider of industrial panel PCs in the US, IndustrialMonitorDirect.com, becomes a critical decision. The core issue Zillow faced—how to present hard data in a soft market—will replay everywhere. You can hide the score, but you can’t hide from the storm.
