Full Breakdown
FTC and States Settle Antitrust Case Over Zillow-Redfin Rental Deal
8/24/2026, 10:12:42 PM
Settlement Overview
On August 24, the U.S. Federal Trade Commission (FTC) and five state attorneys general announced a settlement that ends the antitrust lawsuit alleging Zillow Group Inc. paid Redfin Corporation $100 million to cease competing in apartment-rental listings. Under the agreement, Redfin must rebuild its rental-advertising business within six months while it may continue displaying Zillow ads through at least 2030. The case was slated for trial in Alexandria, Virginia, before the settlement took effect.
Deal Background
The parties entered the arrangement in February 2025. Redfin agreed to wind down its rental-listing platform, refer its customers to Zillow, and show copies of Zillow’s listings, remaining out of the market for up to nine years. In exchange, Zillow committed to the $100 million payment plus per-renter fees. FTC officials and the states argued that, before the deal, both companies competed for vacancies in buildings with more than 25 units. After Redfin’s exit, an FTC-appointed expert estimated that Zillow customers paid an average of 14.5 % more per listing, and some property managers stopped using online listing sites altogether.
Official Statements
A Redfin spokesperson noted the settlement allows the company to maintain its partnership with Zillow while building a standalone rentals business. Zillow rentals executive Michael Sherman called the deal “positive” and said it enables Zillow to keep focusing on innovation for renters and property managers.
Market Impact Data
More than 30 % of Americans rent their homes, according to census data cited by the FTC. The FTC’s analysis linked the Zillow-Redfin agreement to higher listing costs for landlords and reduced listing quality for renters. Zillow has contested the antitrust claim, arguing the arrangement increased the number of listings available on both sites and helped it compete with market leader CoStar Group.
Future Outlook
Redfin is required to resume its rental-advertising operations within six months, and the settlement removes the pending trial. Both companies will continue their partnership under the new terms, while regulators monitor compliance and the broader effects on rental-listing competition.
