Zillow, Redfin settle lawsuits alleging they conspired to reduce competition

Zillow and Redfin have agreed to settle federal and state lawsuits alleging they conspired to reduce competition for apartment listings but said the deal allows them to continue their partnership to show the same apartment listings across their platforms. 

The Federal Trade Commission and five state attorneys general, including New York's Letitia James, had sued the companies, alleging that a $100 million deal between two of the country's most popular real estate websites had reduced competition in the advertising market for rental housing. 

In February 2025, Zillow paid Redfin that sum to show only rental listings that are also shown on Zillow's network of sites, which include StreetEasy, Trulia and Long Island-focused site Out East. 

The companies said Monday they will continue to syndicate listings across their sites but they have agreed to launch standalone advertising products for multifamily rental housing next year as part of the settlement. 

The companies also agreed to pay $2 million to federal and state authorities to cover fees and costs related to the litigation, which Zillow described as an "immaterial amount" in an SEC filing on Monday. 

Attorney General Letitia James said the companies play a critical role in New Yorkers' search for housing and must compete for landlords' business.

“Zillow and Redfin’s illegal agreement to stop competing threatened to raise costs for both renters and landlords and make it harder for New Yorkers to find a place to live," James said in a statement. "After we took action to enforce the law, Zillow and Redfin will continue to compete and invest in improving their services.”

Zillow described its syndication agreement with Redfin as pro-consumer because it gives renters more opportunities to find listings regardless of which website they visit to search. 

The company noted the number of multifamily rental listings on Redfin's websites nearly quadrupled after their syndication pact, and landlords who advertised gained access to greater exposure for their listings. 

"This resolution is a win for renters and multifamily housing providers," Michael Sherman, general manager and SVP of Zillow Rentals, said in a statement on Monday. 

A Redfin spokesperson said the agreement will give the company time to build a standalone advertising product while visitors to its website continue to have access to a wide range of listings. 

"This agreement allows us to maintain our rental partnership with Zillow through at least 2030 while building and investing in a standalone rentals business of our own," the spokesperson said in an email. 

Check back for updates on this developing story. 

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.