Zillow settles FTC claims it paid Redfin to stop competing on apartment listings

Aug 24 : The U.S. Federal Trade Commission and a group of states announced a settlement with Zillow, ending claims the online real estate platform illegally paid Rocket Companies' Redfin $100 million to stop competing in apartment rental listings.

The FTC and five states had argued the Zillow-Redfin partnership drove up costs for landlords and decreased listing quality for renters. More than 30 per cent of Americans rent their homes, according to census data.

The settlement ends the agreement for Redfin to stop competing. Redfin agreed to rebuild its rental advertising business within six months, according to the FTC. 

Zillow has denied the arrangement is anticompetitive and said the deal benefits everyone, as it makes more listings available on more sites.

A Redfin spokesperson said the settlement allows the company to maintain its partnership with Zillow through at least 2030 while building its own standalone rentals business.

A spokesperson for Zillow did not immediately respond to a request for comment.

The case was scheduled to go to trial before a federal judge in Alexandria, Virginia, on Monday. Virginia, Arizona, Connecticut, New York and Washington brought the case alongside the FTC.

Zillow and Redfin made a deal in February 2025: Redfin would wind down its rental listing business, refer its customers to Zillow, and display copies of Zillow's listings on its site. Redfin agreed to stay out of the business for up to nine years.

In return, Zillow agreed to pay Redfin $100 million, plus fees for each renter who signaled interest in a property. 

The FTC and states said that before the deal, Zillow and Redfin were competing to list vacancies in buildings with more than 25 units. 

After Redfin stopped competing, Zillow customers paid an average of 14.5 per cent more per listing, an expert for the FTC and states estimated, while some property managers stopped using online listing sites altogether.

Zillow had said in court papers that the deal led to renters seeing more listings on both sites and helped it compete with market leader CoStar Group. Exclusive deals are common in the industry, Zillow said.