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Zillow has reached a settlement with the US Federal Trade Commission and five states over allegations that it paid Redfin USD 100 million to stop competing in apartment rental listings. The authorities had alleged that the agreement reduced competition, increased advertising costs for landlords and affected listing quality for renters. Under the settlement, Redfin will be allowed to continue displaying Zillow advertisements while rebuilding its own rental advertising business within six months. The case was part of a broader focus by US antitrust authorities on competition in the housing sector and rising living costs.
Zillow has settled claims brought by the US Federal Trade Commission (FTC) and five states over an agreement under which it paid Redfin USD 100 million to wind down its apartment rental listing business and refer customers to Zillow.
The settlement came as the FTC and the states were preparing for a trial that was scheduled to begin this week. They had alleged that the Zillow-Redfin partnership reduced competition in online apartment listings, increased advertising costs for landlords and lowered listing quality for renters. More than 30% of Americans rent their homes, according to US census data.
Under the settlement, Redfin can continue displaying Zillow advertisements on its websites but must resume its own rental advertising business within six months, according to the FTC and the states involved in the case.
The settlement was welcomed by both the federal regulator and the states. New York Attorney General Letitia James said the agreement would restore competition in online listing platforms that consumers use to find affordable housing. Virginia, Arizona, Connecticut and Washington were also plaintiffs in the case.
FTC Chair Andrew Ferguson said the settlement would bring more competition to rental markets, which he described as an important part of the Trump administration’s housing agenda.
Redfin said the agreement allows it to maintain its partnership with Zillow through at least 2030 while rebuilding its own rental business. Zillow rentals executive Michael Sherman also described the settlement as positive, saying it would allow the company to continue focusing on services for renters and property managers.
Zillow and Redfin entered into the agreement in February 2025. Under the arrangement, Redfin agreed to wind down its rental listing business, refer customers to Zillow and display copies of Zillow listings on its platform. Redfin also agreed not to compete in the business for as long as nine years.
In return, Zillow agreed to pay Redfin USD 100 million along with fees for each renter who indicated interest in a property.
The FTC, along with New York, Virginia, Arizona, Connecticut and Washington, sued the companies, alleging that Zillow and Redfin had previously competed to list vacancies in apartment buildings with more than 25 units. Regulators argued that the agreement removed Redfin as a competitor in that market.
An expert for the FTC and the states estimated that after Redfin stopped competing, Zillow customers paid an average of 14.5% more per listing. The authorities also alleged that some property managers stopped purchasing online listings as advertising costs increased.
Zillow had disputed the allegations in court filings, arguing that the agreement increased the number of listings available across both platforms and helped the company compete with CoStar Group, which it identified as the market leader. Zillow also maintained that exclusive arrangements are common in the online real estate advertising industry.
Source Reuters
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