Zillow has removed detailed climate risk data from its U.S. home listings, reversing a major 2024 initiative following mounting pressure from real estate agents and industry groups who argued the ratings were stifling sales and relying on inaccurate models.
The real estate listings company, the largest in the country, quietly pulled the native risk scores — which explicitly warned buyers of flood, fire and heat threats — in late November, as first reported by The New York Times.
While Zillow maintains it is committed to transparency by retaining a less prominent link to its third-party data provider First Street, the decision highlights the growing tension between disclosing long-term climate threats, the immediate financial interests of sellers and industry participants, and the insurance implications of properties in at-risk areas.
This retreat comes at a precarious moment for homebuyers, as the federal safety net for flood damages faces its own existential crisis, potentially leaving buyers physically and financially exposed.
Industry pressure around risk accuracy
Zillow’s integration of climate risk features was praised by consumer advocates but faced immediate pushback from the real estate industry.
Agents reported that the color-coded risk maps and specific “risk scores” were alarming potential buyers and killing deals in markets like Florida and California, often based on data that they claimed was too generalized to apply to specific lots.
The California Regional Multiple Listing Service was a vocal critic. The group raised concerns over the accuracy of First Street’s models, arguing that they were insufficient to justify devaluing specific homes.
First Street expressed concern over the decision and stood by its original assessment. As the Guardian reported, an executive at First Street warned that by burying this data behind a generic link, Zillow is effectively allowing buyers to “fly blind” into purchases that could become financial liabilities as extreme weather events increase in frequency.
A convergence of risks
The removal of easily accessible flood data is particularly ill-timed given the current instability of the National Flood Insurance Program (NFIP). The federal program, which provides around 90% flood coverage in the U.S., recently experienced a 43-day lapse in funding, due to the government shutdown that paralyzed parts of the market.
During this pause, approximately 1,400 home sales were stalled each day because buyers could not secure the mandatory flood insurance required for federally backed mortgages, according to an analysis by the National Association of Realtors.
Although Congress reauthorized NFIP in mid-November, the deal is a temporary stopgap that expires on Jan. 30, 2026. This leaves the long-term stability of flood insurance in doubt just as transparency regarding flood risks is decreasing on major platforms.
If the federal program were to eventually sunset or undergo drastic reform, homeowners forced into the private insurance market could see premiums soar by an estimated 64%, according to an Insurify analysis.
By removing upfront risk scores during this period of insurance volatility, Zillow may be leaving buyers unaware that they are purchasing properties that are not only potentially vulnerable to the elements but also potentially uninsurable in the near future.
