Settlement reached ahead of trial

The Federal Trade Commission has reached a settlement with Zillow and Redfin to resolve the regulator’s claim that the companies made an illegal deal to suppress competition in online rental advertising. The settlement was announced on Aug. 24, the day a trial in the case was set to begin, according to northjersey.com.

The FTC said it filed a proposed order with the U.S. District Court for the Eastern District of Virginia. It essentially requires Redfin to restart its standalone rental housing listings business, which the commission says will restore competition in the market for rental property listings. The settlement also resolves litigation brought by state attorneys general in Arizona, Connecticut, New York, Virginia and Washington.

Daniel Guarnera, director of the FTC’s Bureau of Competition, said in a statement that the 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 disputed 2025 agreement

In its complaint filed almost a year ago, the FTC claimed that in exchange for $100 million and other compensation from Zillow, Redfin had agreed to shut down its internet listings and exclusively repost Zillow’s apartment listings, transition its customers to Zillow, and stay out of the apartment listings market for up to nine years. This arrangement applied to Redfin’s sites, including Rent.com and ApartmentGuide.com, as reported by northjersey.com and TechCrunch.

The commission argued that the companies’ February 2025 pact violated federal antitrust laws and could reduce incentives for competition, leading to higher prices and fewer choices for multifamily rental advertising customers. According to CNBC and the New York Post, an expert for the FTC and states estimated that after Redfin stopped competing, Zillow customers paid an average of 14.5% more per listing.

Zillow and Redfin said their agreement was not anticompetitive and benefited renters and property managers alike. Zillow had said in court papers that the deal put more listings on both sites and helped it compete with market leader CoStar Group, as noted by CNBC and the New York Post.

Terms of the settlement

The FTC’s proposed order requires Redfin to restart its rental listings business and hire enough staff to maintain it within six months of the order being finalized, or face financial penalties. The FTC said Redfin fired hundreds of employees shortly after announcing its deal with Zillow. According to northjersey.com, Redfin must also invest millions of dollars into the business, eliminate any term about sharing sensitive business information with Zillow, and report regularly to the FTC on its progress. Redfin will face fines if it misses deadlines.

While Redfin will continue to syndicate Zillow’s listings, it will be free to seek out and advertise non-Zillow listings, according to the FTC. TechCrunch reported that Redfin will be able to sell advertising, display listings from its own clients, and pursue new rental customers without being required to share sensitive business information with Zillow.

The settlement, which the FTC said contains no admission of liability or wrongdoing by Zillow, allows for a non-exclusive partnership between the two companies through at least 2030, as reported by northjersey.com. Zillow must also provide employee information to allow Redfin to interview its employees, and must waive any impediments that might prevent these employees from accepting employment from Redfin, according to Engadget and northjersey.com.

For a nine-month period after Redfin relaunches its internet listing services business, the FTC said Zillow must allow any customer whose contract cannot be canceled within three months to renegotiate their contracts without penalty, so they can benefit from the restored competition. Additionally, Zillow will launch standalone multifamily advertising products with Redfin in 2027, according to northjersey.com.

The companies will pay the five states $2 million in costs and fees, as reported by northjersey.com.

Reactions from officials and companies

The settlement drew praise from both federal and state officials. New York Attorney General Letitia James said the lawsuit restored competition in online listing platforms, “critical tools that New Yorkers rely on to find affordable homes.” FTC Chair Andrew Ferguson said the settlement will provide competition in rental markets that is “an integral component of President Donald Trump’s domestic housing agenda,” as reported by CNBC and the New York Post.

Zillow said the partnership with Redfin is “pro-consumer and procompetitive,” and that the resolution enables the company to keep its energy on innovating for renters and property managers. A Redfin spokesperson said the settlement allows the company to maintain its partnership with Zillow through at least 2030 while building its own rentals business, according to reports from CNBC, the New York Post, and northjersey.com.

Michael Sherman, general manager and senior vice president of Zillow Rentals, said the resolution is a win for renters and multifamily housing providers, adding that it “enables us to keep our energy on innovating for renters and property managers.”

Background and market context

The case stems from a February 2025 deal in which Redfin agreed to wind down its rental listing business, refer its customers to Zillow, and display copies of Zillow’s listings on its site. In return, Zillow agreed to pay Redfin $100 million, plus fees for each renter who signaled interest in a property, as reported by CNBC and the New York Post. Before the deal, the two companies were competing to list vacancies in buildings with more than 25 units.

The lawsuit was first filed in September 2025 by the FTC, according to Engadget. Arizona, Connecticut, New York, Virginia, and Washington also jointly filed a similar lawsuit against Zillow, which was merged with the FTC’s suit in November 2025.

More than 30% of Americans rent their homes, according to census data, as noted by CNBC and the New York Post.