Zillow has reached a settlement with the U.S. Federal Trade Commission and five states over allegations that it paid Redfin $100 million to stop competing in the apartment rental listings market.
The case focused on a 2025 agreement under which Redfin agreed to wind down its rental advertising business, refer customers to Zillow and display Zillow listings on its own platform. Regulators argued the arrangement reduced competition and increased costs for landlords.
Under the settlement, Redfin will be allowed to continue displaying Zillow advertisements but must restart its own rental advertising business within six months.
The FTC and the states alleged that after Redfin exited the market, Zillow customers paid an average of 14.5% more per rental listing, while some property managers reduced their spending on online advertising.
New York, Virginia, Arizona, Connecticut and Washington joined the FTC in the case, arguing that competition between major rental platforms is important for both landlords and millions of Americans searching for housing.
Redfin said the agreement allows it to maintain its broader partnership with Zillow through at least 2030 while rebuilding its rental business. Zillow said the resolution would allow it to focus on developing services for renters and property managers.
The settlement ends the case before trial and restores Redfin as a direct competitor in the online rental advertising market.
