If you want to buy, sell, or rent real estate in the U.S., Zillow appears to be the only game in town. That’s according to the Semrush Traffic Analytics tool, which tracked over 225 million visits to the listing giant in September, more than double its closest rivals, Craigslist.com and Realtor.com.
However, Zillow is alleged to have paid the price to be boss, as five states have filed lawsuits against the company for paying $100 million to rival Redfin to withdraw from the hotly contested rental listings market, thereby allowing Zillow dominance.
Why the U.S. Rental Market Is So Important to Listings Platforms
The U.S. residential rental market has gained increased importance in recent years, as would-be homebuyers have turned to rentals or are backing out of home purchases. For example, in August, buyers canceled around 56,000 purchase contracts, which represents 15.1% of homes that were under agreement, according to a Redfin report. The cancellations not only represent the highest number since 2017, but are also up from 14.3% of cancellations in August 2024.
“Home purchases are falling through more frequently because buyers and sellers oftentimes aren’t on the same page and aren’t willing to compromise,” the Redfin report stated.
Redfin’s most recent report was unrelated to its alleged deal with Zillow, which occurred in February, when Zillow made a payment of $100 million on the condition that Redfin cease its apartment rental advertising operations and terminate its contracts with property managers advertising multifamily properties. Instead, Redfin was required to redirect these clients to Zillow’s platform, a move that states contend gave Zillow an unfair advantage over its competition.
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