Zillow Paid Redfin $100 Million. What Was It Buying? The FTC Says They Broke the Law
Millions of renters use Zillow and Redfin to find rental properties. In February 2025, Zillow paid Redfin $100 million. Subsequently, Redfin walked away from the apartment advertising business it had spent years building. The companies and the Federal Trade Commission characterized the deal differently.
On Monday, Aug. 24, 2026, hours before an antitrust trial was set to begin in a Virginia federal court, the FTC and five states filed a proposed settlement to remove the anticompetitive restrictions at the deal’s core.
What the FTC and states say the money bought
The FTC and the attorneys general of Arizona, Connecticut, New York, Virginia and Washington describe it bluntly. They say Zillow paid a direct rival to stop competing and hand over its customers, an “end run around competition” in an already concentrated market.
A government expert estimated that Zillow customers paid an average of 14.5% more per listing after Redfin stepped away. That figure reflects an advertising cost paid by landlords and property managers, not a rent increase, and it’s hard to trace whether it reaches tenants.
Before the deal, Zillow, Redfin and CoStar’s Apartments.com accounted for about 85% of the market’s revenue, according to the states, so losing one competitor mattered.
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What Zillow and Redfin say they were doing
The companies tell a different story. In its statement, Zillow says the partnership was “pro-consumer and procompetitive” and that syndication put more listings in front of more renters.
Zillow has also stated that the deal helps it compete with the market leader, CoStar’s Apartments.com. Exclusive deals, it argues, are ordinary in the industry.
Redfin, now owned by Rocket Companies, called the resolution a win and said it can keep the Zillow partnership through at least 2030 while “building and investing in a standalone rentals business of our own.” Neither company admitted wrongdoing.
What the settlement requires
The proposed order runs for 10 years and strips the deal of exclusivity. Redfin must relaunch a standalone apartment advertising business within six months of the order taking effect or face penalties.
The syndication survives, so Redfin keeps showing Zillow’s listings through at least 2030, but it is free again to sell its own advertising and court property managers directly.
What it means for your apartment search
The FTC says restoring competition should lower costs and push the platforms to improve, mainly by giving property managers a second independent place to advertise. That is what regulators are betting on, not a check to renters.
For anyone hunting for an apartment, it is a good idea not to rely on a single site, budget for overlooked costs of renting beyond the advertised rent, and confirm a unit directly with the building or manager before sending money. These precautions help you sidestep the rental scams that feed on copied and stale listings.
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