The US Federal Trade Commission and a group of states settled with Zillow forward of trial on Monday, ending claims the online real estate platform illegally paid Rocket Companies’ Redfin $100 million to stop competing in residence rental listings.
The FTC and 5 states were prepared to argue at trial scheduled to begin Monday that the Zillow-Redfin partnership drove up prices for landlords and decreased itemizing high quality for renters. More than 30% of Americans rent their properties, according to census information.
Under the settlement, Redfin can proceed to show Zillow adverts on its websites but will resume its rental promoting business within six months, the FTC and states said.
The Federal Trade Commission and 5 states were set to argue at trial scheduled to begin Monday that the Zillow-Redfin partnership drove up prices for landlords and decreased itemizing high quality for renters. keBu.Medien – stock.adobe.com
While Democratic state attorneys common have clashed with the Trump administration on other issues, both the FTC and the states called the settlement a win.
New York Attorney General Letitia James said the lawsuit restored competitors in online itemizing platforms, “critical tools that New Yorkers rely on to find affordable homes.”
Virginia, Arizona, Connecticut and Washington were also plaintiffs.
FTC Chair Andrew Ferguson said the settlement will present competitors in rental markets that is “an integral component of President Donald Trump’s domestic housing agenda.”
A Redfin spokesperson said the settlement permits the company to keep its partnership with Zillow through at least 2030 while building its own leases business.
Redfin can proceed to show Zillow adverts on its websites but will resume its rental promoting business within six months as half of the settlement, according to the FTC and states. AP Photo/Cliff Owen
Zillow leases government Michael Sherman said the settlement is constructive and “enables us to keep our energy on innovating for renters and property managers.”
Zillow and Redfin made a deal in February 2025: Redfin would wind down its rental itemizing business, refer its prospects to Zillow, and show copies of Zillow’s listings on its website. Redfin agreed to keep out of the business for up to 9 years.
In return, Zillow agreed to pay Redfin $100 million, plus charges for each renter who signaled curiosity in a property.
The FTC sued the firms, as did New York, Virginia, Arizona, Connecticut and Washington. They said that before the deal, Zillow and Redfin were competing to checklist vacancies in buildings with more than 25 items.
After Redfin stopped competing, Zillow prospects paid an average of 14.5% more per itemizing, an skilled for the FTC and states estimated, while some property managers stopped shopping for online listings.
Zillow had said in court papers that the deal put more listings on both websites and helped it compete with market chief CoStar Group. Exclusive offers are common in the industry, Zillow had said.
