Zillow has reached a settlement with the U.S. Federal Trade Commission and a group of states, resolving claims that the online real estate platform paid Redfin $100 million to cease competition in the apartment rental listings market. The agreement was announced Monday, just ahead of a trial that was set to begin the same day.
The FTC and five states, including New York, Virginia, Arizona, Connecticut, and Washington, had intended to argue that the partnership between Zillow and Redfin artificially inflated costs for landlords and degraded the quality of listings available to renters. The FTC stated that over 30% of Americans rent their homes.
Under the terms of the settlement, Redfin will be permitted to continue displaying Zillow advertisements on its websites. However, the company is slated to re-enter the rental advertising business within six months. A Redfin spokesperson confirmed that the company can maintain its advertising partnership with Zillow through at least 2030 while concurrently developing its own rental business.
Zillow rentals executive Michael Sherman described the settlement as a positive outcome that allows the company to focus on innovation for renters and property managers. Both the FTC and the participating states hailed the settlement as a victory.
New York Attorney General Letitia James emphasized that the agreement restores competition to online listing platforms, which she characterized as essential tools for New Yorkers seeking affordable housing. FTC Chair Andrew Ferguson noted that the settlement would foster competition in rental markets, aligning with President Donald Trump's domestic housing agenda.
Previously, Zillow and Redfin had entered into an agreement in February 2025. This deal stipulated that Redfin would wind down its rental listing operations, redirect customers to Zillow, and feature copies of Zillow's listings. Redfin had agreed to refrain from re-entering the rental listing business for a period of up to nine years. In exchange, Zillow committed to paying Redfin $100 million, in addition to fees for each renter who expressed interest in a property listed.
The lawsuit, filed by the FTC and the coalition of states, alleged that prior to their agreement, Zillow and Redfin were actively competing to list vacancies in buildings containing more than 25 units. An expert for the plaintiffs estimated that after Redfin exited the market, Zillow customers experienced an average increase of 14.5% in per-listing costs, and some property managers ceased purchasing online listings altogether. Zillow, in its court filings, had asserted that the deal aimed to increase listings on both platforms and strengthen its competitive position against market leader CoStar Group, noting that exclusive agreements are common within the industry.