Zillow Redfin Rental Deal Ends in Settlement as US Moves to Restore Competition
Washington, D.C., United States, August 25, 2026: Zillow and Redfin have reached a settlement with the U.S. Federal Trade Commission (FTC) and five states, ending allegations that a rental advertising partnership between the two real estate platforms reduced competition and increased advertising costs for apartment landlords.
The settlement requires Redfin to restart its rental advertising business within six months, potentially creating more competition in the US online rental listing market.
Why Zillow and Redfin Faced FTC Action
Zillow and Redfin entered into a partnership in February 2025 under which Redfin agreed to wind down its rental listing business and refer customers to Zillow.
Zillow agreed to pay Redfin $100 million, along with fees linked to renters showing interest in properties. Redfin also agreed not to compete in the rental advertising business for an extended period.
The FTC and attorneys general from New York, Virginia, Arizona, Connecticut and Washington alleged that the arrangement reduced competition between two major online rental listing platforms.
Redfin Must Restart Rental Advertising Within Six Months
Under the settlement, Redfin can continue displaying Zillow advertisements on its websites, but it must resume operating its own rental advertising business within six months.
Redfin said the settlement allows it to continue its partnership with Zillow through at least 2030 while rebuilding its own rental business.
Rental Advertising Costs Came Under Scrutiny
According to an expert cited by the FTC and the states, Zillow customers paid an average of 14.5% more per listing after Redfin stopped competing in the rental advertising market.
The authorities argued that reduced competition could increase costs for property managers and potentially affect the quality and availability of rental listings for consumers.
What the Settlement Means for Landlords
For landlords and property managers, the return of Redfin as a competing rental advertising platform could provide another option for marketing apartments online.
Greater competition between listing platforms could potentially give property owners more choices over where they advertise vacancies and how much they spend on online listings.
What It Could Mean for Renters
More competition in rental listings could also benefit renters if platforms compete on listing quality, advertising reach and pricing.
The issue is particularly significant in the US, where more than 30% of Americans rent their homes, according to US Census data.
A Wider Impact on the US Housing Market
The settlement comes as US authorities continue to focus on competition and housing affordability.
New York Attorney General Letitia James said the case helps restore competition in online listing platforms, which are important tools for people searching for affordable housing.
The FTC also described the settlement as a step toward strengthening competition in rental markets.
Grihik Property Takeaway
The Zillow-Redfin case shows how competition between property listing platforms can affect landlords, property managers and renters.
For property owners, having multiple strong rental advertising platforms can mean more choice and potentially better value when marketing vacant homes. For renters, greater competition could eventually translate into better listing availability and more transparent rental options.