FTC Orders Redfin, Zillow to Change Rental Market Agreement

Federal regulators have mandated that real estate firms Redfin and Zillow must alter a commercial agreement they struck last year, citing its negative impact on competition and consumers in the home rental market.

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This settlement delivers better, quicker, more certain results for both renters and property management companies than we would have been able to achieve after prevailing at trial, including firm and enforceable commitments by Redfin to relaunch its rentals advertising business.

The Federal Trade Commission (FTC) announced a settlement on Monday that resolves an antitrust lawsuit filed by the agency. The FTC's complaint detailed an arrangement where Zillow allegedly paid Redfin $100 million to cease listing multifamily properties and to exclusively repost apartment listings provided by Zillow. As part of the deal, Redfin also agreed to end contracts with its advertising clients and transfer them to Zillow.

The FTC's order requires the real estate platforms to remove anticompetitive clauses from their agreement. Redfin will also need to re-enter the rental market with an increased number of home listings to provide renters with a broader selection. The agency believes that restoring competition will lead to lower prices, benefiting both renters and property management companies.

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through at least 2030 while building and investing in a standalone rentals business of our own.

The settlement was reached with Zillow on the morning the case was scheduled for trial. Daniel Guarnera, director of the FTC's Bureau of Competition, stated that the agreement offers "better, quicker, more certain results" than a trial, including enforceable commitments from Redfin to restart its rentals advertising business. A spokesperson for Redfin confirmed the agreement allows their rental partnership with Zillow to continue through at least 2030 while they develop their own standalone rentals business. Zillow also expressed satisfaction, calling the settlement "great news for renters, housing providers and the rental market broadly."

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great news for renters, housing providers and the rental market broadly.