Attorney General James Sues Zillow and Redfin for Illegal Scheme to Stop Competing for Apartment Advertisements

October 1, 2025

NEW YORK - New York Attorney General Letitia James today joined a bipartisan coalition of states in suing Zillow Group, Inc. (Zillow) and Redfin Corporation (Redfin), two of the nation's largest online apartment rental marketplaces, for an illegal scheme to stop competing with each other. Zillow and Redfin, which owns Rent.com, fiercely competed as two of the top three companies that offer advertising for apartment rentals online. In February 2025, Zillow and Redfin entered into agreements under which Zillow paid Redfin $100 million to shut down its apartment rental advertising business and transfer its clients to Zillow. The lawsuit alleges that Zillow and Redfin's agreements violate federal antitrust laws and may harm renters as well as those advertising apartments for rent in multifamily buildings.

"Millions of New Yorkers rely on online apartment listings to find an affordable and safe place to live," said Attorney General James. "Zillow's attempt to shut down its competition could drive up costs for advertisers and leave renters with fewer options when searching for a new apartment. New Yorkers are already struggling with an unaffordable housing market, and I will fight to stop this illegal deal that could make it even harder to find a home."

The market for online apartment rental advertising is already highly concentrated, with just three companies - Zillow, Redfin, and CoStar (owner of Apartments.com) - accounting for 85 percent of all market revenue. For years, these companies have competed fiercely to sell advertising to property management companies and landlords and attract prospective renters. This competition incentivized Redfin and Zillow to invest in improving their user experiences to attract more advertisers and renters.

Competition between Zillow and Redfin ended when they implemented an unlawful scheme through two agreements signed on February 6, 2025, a Partnership Agreement and a Content License Agreement. Under the Partnership Agreement, Zillow paid Redfin $100 million to exit the market for advertising apartments in buildings with 25 units or more and transfer Redfin's multifamily advertising business to Zillow, its direct competitor. Under the Content License Agreement, Redfin agreed to stay out of the multifamily advertising market for up to nine years and instead use its network to show only apartment rental listings that are also displayed on Zillow's sites. While the agreement is currently limited to buildings with 25 or more units, it expressly proposes an extension to all apartment buildings. As a result of this unlawful agreement, Redfin fired approximately 450 employees associated with its multifamily rental advertising business.

Attorney General James and the coalition argue that Zillow and Redfin's unlawful scheme significantly hurts competition in the apartment advertising market. This lack of competition could result in higher prices, lower-quality rental advertising, and fewer choices - both for landlords seeking to advertise rentals and for renters seeking a home.

Zillow and Redfin's unlawful agreements could also harm prospective renters by undermining the companies' incentives to compete for traffic. Attorney General James and the coalition argue that under the agreements, Redfin will earn revenue by referring renters to Zillow, reducing its incentives to improve its user experience and innovate to attract new customers.

Attorney General James and the coalition are seeking a court ruling declaring that Zillow and Redfin's agreements violate federal antitrust laws and an injunction that would prohibit Zillow and Redfin from engaging in their unlawful conduct and restore competition. The lawsuit also proposes divestiture of assets or reconstruction of businesses to restore competition.

Joining Attorney General James in filing this lawsuit are the attorneys general of Arizona, Connecticut, Washington, and Virginia.

This matter is led for New York by Assistant Attorney General Luisa Di Lauro and Michael Schwartz, under the supervision of Amy McFarlane, Deputy Bureau Chief, and Elinor Hoffmann, Bureau Chief - all of the Antitrust Bureau. The Antitrust Bureau is part of the Economic Justice Division, led by Chief Deputy Attorney General for Economic Justice Chris D'Angelo and overseen by First Deputy Attorney General Jennifer Levy.