When Zillow introduced climate risk scores into its real estate listings in late 2024, the move drew significant interest from buyers and environmental advocates alike. These scores, generated using data from First Street Foundation, outlined the likelihood of floods, wildfires, and other climate-related risks for over one million properties. This seemed like a forward-thinking addition, catering to the growing percentage of homeowners, about 80%, as surveys show, who factor climate risks into their purchase decisions. But fast forward a year, and the company quietly reversed its stance, removing the scores entirely due to backlash from real estate agents and listing services.
As a serial entrepreneur, I view this decision from a multidisciplinary perspective. It is a clear demonstration of the friction between transparency and commercial interests, particularly in sectors like real estate that rely heavily on consumer trust, but also on profitability. This narrative also underlines a pressing need for technology to bridge gaps that social and economic forces reveal, while balancing fair business practices.
The Reason Behind Zillow’s Retreat
Zillow faced significant pressure from the California Regional Multiple Listing Service (CRMLS), which raised questions about the accuracy of First Street's flood risk data. Real estate agents echoed these concerns, claiming that the scores discouraged potential buyers. A common complaint? That homes with high-risk ratings were often overlooked, regardless of whether these risks had manifested recently. For agents, this was a matter of lost commissions. For Zillow, continuing to display climate scores threatened its relationship with MLS databases, upon which it depends heavily for property information.
Curiously, while Zillow removed the scores, other platforms such as Realtor.com and Redfin continue to display them. This competing landscape hints at varying approaches to consumer transparency, yet underscores a worrying trend: beneficial information may often be sacrificed when it obstructs immediate gains.
Why Climate Transparency Matters
Understanding the risks tied to climate events is essential for homebuyers making long-term financial commitments. Research by Louisiana State University reveals that FEMA flood maps often underestimate the true flood risk. For example, twice as many properties face a 1% annual flood chance than official maps show. Tools like First Street's aim to fill this void, offering insights that are not only relevant but necessary for consumers to make informed choices.
As a business owner, I find this issue particularly poignant: failing to provide transparent information doesn't erase the risks, it merely shifts the burden onto the buyer, creating a liability post-purchase. While the industry prioritizes immediate sales, the consumer inherits potential damages, from financial losses to repair costs.
What Entrepreneurs Can Learn From This
For startup founders, Zillow’s choice serves as a cautionary tale. When introducing innovation, whether in tech, real estate, or any other sector, tensions will arise between disrupting traditional models and earning buy-in from established players. Here are lessons that can be gleaned from this example:
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Innovation Must Be Balanced: Some stakeholders will resist change, especially if it impacts profits. Addressing concerns like CRMLS's requires offering better, mutually beneficial solutions rather than inciting opposition.
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Stand Firm on Values: Consumer trust builds over time but can be lost in an instant. Entrepreneurs in PropTech or other fields positioning transparency as a selling point should stand by their principles.
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Educating Stakeholders: Many complaints against climate risk scores stemmed from unfamiliarity with predictive modeling. Providing validation studies of tools, alongside comprehensive educational resources, could preempt resistance.
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Diversify Revenue Streams: Businesses relying heavily on partnerships, like Zillow depends on MLS databases, often forego independent decisions. Diversifying income reduces reliance on external entities.
Mistakes to Avoid When Building Scalable Innovation
When introducing technological advancement, several pitfalls can derail progress:
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Ignoring Competing Interests: Always factor in how changes will impact stakeholders with vested interests. Address their concerns openly.
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Failing to Validate Data: Ensure that generated data is as accurate as possible, especially when potential inaccuracies pose public backlash.
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Overlooking Communication: Clear information reduces skepticism. Unexplained decisions (like Zillow’s quiet removal) can erode trust.
How Entrepreneurs Can Integrate Climate Risk Transparency
One promising path for entrepreneurs is developing tools that democratize access to data without creating friction with existing systems. Integrated platforms that offer risk models as optional, rather than mandatory, augments transparency without alienating industry players. For inspiration, tools similar to Realtor.com’s climate features can be explored.
Furthermore, feedback loops could transform how scores are perceived. Add interactive features that enable homeowners to refine or appeal risk ratings. Launch models that collaborate with insurers, policymakers, and urban planners to further validate predictions. If I were designing a PropTech solution, this participative approach would be foundational.
Insights on Broader Trends
Real estate, like any industry undergoing technological shifts, often resists change before embracing it fully. Similar debates took place around digital tours and automated property valuations, both features which later became ubiquitous. I believe climate risk data will follow this trajectory, eventually becoming indispensable in decision-making.
From my experience navigating innovation across multiple industries, it’s apparent that the success of disruptive tools lies not only in their utility but in their adaptability. Zillow's retreat may slow progress, but it doesn't stop it, and entrepreneurs have an opportunity to step in where gaps emerge.
Conclusion
The removal of climate risk scores represents a temporary pause in the push toward integrating predictive analytics in real estate practices. But this narrative also raises deeper implications around balancing innovation, transparency, and profit. For entrepreneurs, this is an important moment to rethink how technology can engage both consumer and business stakeholders harmoniously.
Startup founders, particularly those in PropTech, should note that tensions often emerge where gaps in understanding exist. Education, validation, and adaptability are essential components when navigating these waters. For me, this situation also reinforces a personal mantra: innovation thrives not through isolated brilliance but through collective refinement. Whether you’re building tools or platforms, always keep room for bridging divides rather than widening them.
Those developing climate tools may find fresh approaches by examining consumer needs alongside market hesitations. After all, where competitors falter, opportunities to deliver smarter, friendlier, and fairer solutions await.
FAQ
1. Why did Zillow remove climate risk scores from its listings?
Zillow removed the climate risk scores after facing objections from the California Regional Multiple Listing Service (CRMLS). Agents complained that these scores negatively impacted sales as buyers reportedly avoided homes with high-risk ratings. Read more about CRMLS objections
2. What source provided the climate risk data for Zillow?
The data for climate risk assessments was provided by the First Street Foundation, a risk-modeling company specializing in flood, wildfire, and other climate risk predictions. Explore First Street Foundation
3. What alternative platforms still display climate risk scores?
Platforms like Realtor.com and Redfin continue to feature First Street Foundation’s climate risk scores despite Zillow’s removal. Learn more about Realtor.com's climate features
4. How accurate are First Street Foundation’s climate risk predictions?
First Street Foundation claims a strong predictive accuracy, as evidenced during the 2025 LA wildfires where over 90% of homes that burned were flagged as high-risk. Find the stats on First Street's performance
5. Why is climate transparency important for homebuyers?
Research reveals FEMA flood maps often underestimate risks. First Street’s tools aim to provide homebuyers with better insights, enabling informed financial decisions. Review Louisiana State University’s analysis
6. How did the California Regional Multiple Listing Service (CRMLS) influence Zillow’s decision?
CRMLS raised concerns about the perceived inaccuracy of First Street’s flood risk data and its adverse impact on property desirability and agent commissions. Understand CRMLS objections
7. What has been the consumer response to climate risk data removal?
Many consumers considered the removal a setback for transparency, as they now need to search separately for climate risk information. Learn about consumer reactions
8. How could Zillow have avoided backlash when introducing climate risk scores?
Experts suggest better stakeholder education and stronger validation of climate models to address industry concerns before making data publicly available. Discover PropTech lessons
9. Is Zillow committed to providing climate risk data going forward?
Although Zillow removed the detailed scores, they now provide a link to First Street Foundation’s website for users seeking this information independently. Check Zillow's modified approach
10. Could climate risk modeling become standard for real estate listings?
As extreme weather events increase, experts predict climate risk data could eventually become a standard feature, despite initial resistance from stakeholders. Explore industry predictions
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.