FTC Settlement Requires Zillow and Redfin to Restore Competition in Rental Listing Market

Washington, D.C. - Zillow and Redfin have reached a proposed resolution with the Federal Trade Commission over an antitrust case involving online rental listings, avoiding a trial that had been scheduled to begin this week.

The FTC, joined by attorneys general from Arizona, Connecticut, New York, Virginia and Washington, said the proposed order is designed to restore competition in the market for internet listing services used by renters searching for apartments and by property managers advertising multifamily rentals.

The case centered on a 2025 agreement in which Zillow paid Redfin $100 million. According to the FTC, the deal required Redfin to shut down parts of its rental advertising business, transition customers to Zillow, repost apartment listings supplied by Zillow and stay out of the internet listing services market for up to nine years.

The FTC alleged that the arrangement harmed competition by removing Redfin as an independent rival in a market where renters and property managers rely heavily on online platforms.

Under the proposed order, Zillow and Redfin must amend their agreement and remove restrictions that limited Redfin’s ability to compete independently. Redfin is also required to reenter the rental advertising market within six months after the order becomes final.

Redfin must rebuild technology, hire staff, provide customer support and promote its renewed rental advertising business. The order also requires Redfin to make multiyear commitments and invest millions of dollars to support the business.

The FTC said Zillow must also help make Redfin’s return possible. That includes allowing Redfin to recruit certain Zillow employees by removing noncompete or anti-poaching barriers, and giving some Zillow rental-advertising customers contract flexibility after Redfin relaunches.

The proposed order is expected to remain in effect for 10 years. Redfin could face penalties if it fails to meet its commitments.

For renters, the settlement could mean more competition among platforms that display apartment listings. In theory, stronger competition may encourage better search tools, wider listing availability and more innovation.

For property managers and apartment advertisers, the FTC says restoring Redfin as an independent competitor could create more choices and put pressure on advertising costs.

The case also has Arizona relevance because the Arizona Attorney General joined the litigation alongside the FTC and other states. Rental affordability and apartment availability remain major issues in Arizona cities such as Phoenix, Mesa, Tempe, Chandler, Scottsdale and Tucson.

The FTC Commission approved the stipulated final order by a 2-0 vote. The order will have the force of law once approved and signed by the federal district court judge.