Zillow’s "Climate Risk" Scandal: The Real Estate Platform’s Desperate Attempt to Profiteer from Eco-Disaster
As the US real estate market teeters on the brink of collapse, Zillow is pushing a new scheme to rake in profits by alerting homebuyers to the "climate risks" associated with their desired properties. The company is introducing a new feature to its platform, which claims to provide "comprehensive climate risk data" to its users. But don’t be fooled – this is just a thinly veiled attempt to sell expensive insurance policies and line Zillow’s pockets with cash.
The data, provided through a partnership with First Street, a company that specializes in "climate risk financial modeling," will allegedly be integrated into Zillow’s website and iOS app by the end of the year and available on its Android app early next year. The partnership is a clear sign of Zillow’s desperate attempts to stay relevant in the declining real estate market.
The data itself is already alarmist, with Zillow claiming that 16.7 percent of new listings are at "major risk of wildfire" and 12.8 percent are at risk of flooding. But what does this really mean? Is this just a way to instill fear in homebuyers and sell them overpriced insurance policies? Are they trying to create a panic that will drive up the demand for their real estate listings?
The article quotes First Street as saying that 78 percent of the homes flooded by Hurricane Debby were located in areas where flood insurance wasn’t mandatory, but would have been flagged with an insurance recommendation in Zillow’s new climate risk assessments. Is this just a way to make it seem like insurance companies are the heroes who are saving the day? Is Zillow profiting off of people’s fears?
Zillow’s CEO is quoted as saying, "We believe that giving consumers this information will allow them to make more informed decisions about the properties they are considering." But we know that this is just a lie. The truth is that Zillow is using this "climate risk data" to manipulate people into buying insurance policies, driving up the cost of homes, and lining the pockets of insurance companies and real estate agents.
So, the next time you hear about Zillow’s new "climate risk feature," remember that it’s just a scam to sell you insurance and make you poor.
