Zillow Faces a New Major Lawsuit Over an Alleged Monopoly
Summary
Zillow is facing lawsuits over alleged anti-competitive practices in the rental market, potentially leading to increased advertising costs for property managers, which could then increase rental costs for guests. Hosts should be aware of these market dynamics and consider alternative marketing strategies to avoid dependency on a single platform.
Key Insights
- •According to the Semrush Traffic Analytics tool, Zillow has over 225 million visits, more than double its closest rivals, Craigslist.com and Realtor.com.
- •In the first half of 2025, Zillow’s multifamily rental business earned around $200 million, while Apartments.com generated over $570 million, accounting for 38% of total company revenue.
- •According to a Redfin report, in August, buyers canceled around 56,000 purchase contracts, which represents 15.1% of homes that were under agreement.
- •A typical household currently spends 29.6% of its income on rent and needs an annual income of $80,949 to afford the median rental.
Action Items
- ✓Increasing word-of-mouth networking locally and organically through trusted sources should also be a part of the plan.Effort: lowImpact: medium
- ✓Consider adopting more conservative investment strategies in response to rising expenses.Effort: mediumImpact: medium
Tools & Resources
- →Baseline: According to the rental management software company Baseline
- →Redfin report: Redfin report
- →Semrush Traffic Analytics tool: The Semrush Traffic Analytics tool
Common Mistakes
- ⚠If Zillow has a monopoly over the rental market, reducing competition can lead to higher advertising fees.
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