In what the FTC is calling a “blatantly anti-competitive agreement,” Zillow paid Redfin $100 million to get out of the rental advertising business and hand over its multifamily customers. That’s not an exaggeration…according to the FTC’s 32-page federal complaint filed September 30, the agreement requires Redfin to terminate all contracts for properties with 25 or more units, share sensitive customer info, lay off its entire rentals team, and direct its clients (and staff) over to Zillow.
In return, Redfin gets to stay in the rental search game… as a syndicator for Zillow listings only. The agreement spans up to nine years and effectively kills off Redfin as a competitor in the ILS (Internet Listing Service) space for large rental properties.
For landlords and property managers, this means fewer options and—according to the FTC—likely higher costs, fewer features, and diminished service. Investors depending on online lead gen and listing exposure could see fewer levers to pull and less negotiating power.
For agents working with landlords, especially in multifamily or single-family rental portfolios, the implications are pretty straightforward: Zillow just got stronger, and Redfin isn’t even pretending to compete anymore.
A duopoly was already forming in the rental ILS space, Zillow and CoStar (Apartments.com) dominate. Redfin’s acquisition of RentPath back in 2021 gave us a real third option for a while. But with this deal, we’re now down to two again, and the FTC clearly thinks that’s a problem.
Whether this lawsuit actually reshapes the playing field is anyone’s guess. But for anyone managing rentals or advising clients who do, this is a good time to pay attention to where your listings are going, and who controls the visibility and pricing behind the curtain.
📄 Full Complaint (FTC v. Zillow & Redfin, Case No. 1:25cv1638):