Zillow has Backed Out of Climate Risk Scores Just a Year After Launching Them.
In a move that's likely to be seen as a major concession, Zillow has ditched its climate risk scores from over 1 million listings. The decision comes after real estate agents complained that the data was misleading and led to lost sales. Agents had argued that the scores were unnerving potential buyers and taking up valuable mental space.
However, First Street, which provided the original assessment, isn't happy about this change. Its spokesperson told TechCrunch that while the risk doesn't go away, it now shifts from a pre-purchase consideration to a post-purchase liability. First Street's climate scores still show up on listings from other major real estate platforms like Redfin, Realtor.com, and Homes.com.
The California Regional Multiple Listing Service (CRMLS), which uses Zillow primarily, is pleased with the decision. Its CEO said that highlighting the probability of flooding this year or in the next five years can have a significant impact on perceived property desirability.
However, CRMLS also questioned the accuracy of First Street's data, pointing out that some areas haven't experienced flooding in decades and thus shouldn't be expected to do so anytime soon. First Street defended its models as being based on transparent science validated by real-world outcomes.
The controversy surrounding climate risk scores has been brewing since Zillow launched them last year. Some agents had expressed concerns that the data was influencing buyer decisions, with one agent saying it put "thoughts in people's minds" about their listings that shouldn't have been there. With over 80% of potential buyers now considering climate risks when shopping for a home, those thoughts are likely already on the market.
Despite some pushback, First Street maintains that its scores are useful and accurate. The company claims its maps correctly identified risk in almost all homes that burned during recent wildfires in Los Angeles, outperforming official state hazard maps in some areas.
In a move that's likely to be seen as a major concession, Zillow has ditched its climate risk scores from over 1 million listings. The decision comes after real estate agents complained that the data was misleading and led to lost sales. Agents had argued that the scores were unnerving potential buyers and taking up valuable mental space.
However, First Street, which provided the original assessment, isn't happy about this change. Its spokesperson told TechCrunch that while the risk doesn't go away, it now shifts from a pre-purchase consideration to a post-purchase liability. First Street's climate scores still show up on listings from other major real estate platforms like Redfin, Realtor.com, and Homes.com.
The California Regional Multiple Listing Service (CRMLS), which uses Zillow primarily, is pleased with the decision. Its CEO said that highlighting the probability of flooding this year or in the next five years can have a significant impact on perceived property desirability.
However, CRMLS also questioned the accuracy of First Street's data, pointing out that some areas haven't experienced flooding in decades and thus shouldn't be expected to do so anytime soon. First Street defended its models as being based on transparent science validated by real-world outcomes.
The controversy surrounding climate risk scores has been brewing since Zillow launched them last year. Some agents had expressed concerns that the data was influencing buyer decisions, with one agent saying it put "thoughts in people's minds" about their listings that shouldn't have been there. With over 80% of potential buyers now considering climate risks when shopping for a home, those thoughts are likely already on the market.
Despite some pushback, First Street maintains that its scores are useful and accurate. The company claims its maps correctly identified risk in almost all homes that burned during recent wildfires in Los Angeles, outperforming official state hazard maps in some areas.
guess those agents were right tho, who wants to buy a home with a constant flood threat on their mind? i mean, first street thinks its data is accurate but crMLS says it's not even close... like, if areas haven't flooded in decades why should we expect them to now? 
and honestly, 80% of buyers considering climate risks when shopping for a home? that's kinda messed up... what's next, earthquake insurance checks on every listing? 
... I mean, you'd think they'd be a good thing to have on listings, right? But apparently, real estate agents are worried that it'll scare off buyers and hurt sales. And now Zillow is backing out of it? That's just crazy talk! 
I remember when I was looking for an apartment back in 2008, we didn't even think about climate change, let alone scores. It's like they're trying to make a buck off our worries instead of actually helping us find the perfect place 
.
I mean, I get it, climate change is real and all that jazz, but can't we just focus on finding homes instead of stressing about them? 
Zillow just backpedaled on their climate risk scores like 1 year after launching them? I know some agents were complaining about how it was influencing buyer decisions but come on! 
First Street is still gonna provide the data to other platforms, so i guess they're not letting this drop. 
But seriously, CRMLS thinks it's a good idea because it can affect perceived property desirability? 
. anywayz, feels like zillow just decided to give it a rest, but idk what the future holds for climate risk scores 
Still, it's weird that First Street isn't happy about this change... They seem pretty confident in their data. And yeah, accuracy is key when it comes to something like this. Maybe they'll go back to using the scores eventually? 