Takeaways:
- First Street CEO says the move was influenced by a tough real estate market, not his firm's work
- Lack of data can financially impact home buyers and affect insurance choices
- Zillow points those who want the scores back to First Street
- Advocate says home buyers making decisions blind without climate risk data
The CEO of the climate risk data firm whose
Matthew Eby, founder and CEO of First Street, said the removal will hurt consumer protection, causing lifelong financial consequences for affected home buyers.
"We take accuracy very seriously, and the data speaks for itself," Eby stated in a written response to questions. "Our models are built on transparent, peer-reviewed science and are continuously validated against real-world outcomes."
The California Regional Multiple Listing Service (CRMLS), a real estate professionals group,
Eby responded that the quality of First Street's models and scores had not changed, only the real estate market has. "This push didn't arise when housing markets were roaring and inventory was plentiful. It's happening now, during one of the toughest real-estate environments in decades. You have persistently high mortgage rates, growing insurance availability problems after major disasters, rising premiums that kill deals at the last mile, and a tight housing supply that's slowing transactions," he stated. "All of that adds pressure to close sales however possible. Climate risk data didn't suddenly become inconvenient. It became harder to ignore in a stressed market."
Eby also responded to direct criticisms of First Street data by CRMLS. "When claims are made that our models are inaccurate, we ask for evidence," he stated. "To date, all the empirical validation shows our science is working as designed and providing better risk insight than the tools the industry has relied on historically."
A Zillow spokesperson said that First Street's data can still be found on the climate data firm's website. "While some additional, in-depth analysis on First Street's site may be behind a paywall, the core property-level climate data remains free to access," stated Claire Carroll, in a written response to questions. "Zillow remains committed to providing consumers with information that helps them make informed real estate decisions. Consumers can now access climate risk assessments for properties through First Street's website, linked directly from listings on Zillow. This update ensures consumers continue to have access to important information to help them consider factors such as insurance, repair costs and long-term homeownership planning, and reflects our long-standing commitment to empowering consumers with transparent information."
Insurance consumer advocates called for standardized, publicly available climate risk information for home buyers.
"First Street's private, proprietary climate risk scoring can provide useful information, but it is no substitute for high-quality public data and models," said Caroline Nagy, the associate director of housing policy at Americans for Financial Reform, in a press release.
"When you buy a home, you check the roof for leaks and inspect the foundation, you don't make that decision blind," stated Lizzy Price, spokesperson for the Insurance Fairness Project. "It should be no different when it comes to climate risks. Homebuyers deserve full access to the data that shows long-term hazards. Hiding that information is dangerous. Without it, families are left vulnerable to insurance premium spikes, loss of coverage, and financial strain they never saw coming."
