Zillow Settles With FTC, Preserves Redfin Deal

Zillow Group announced on Monday that it has reached a settlement with the Federal Trade Commission and five state attorneys general, averting a federal trial that was slated to begin this week. This resolution effectively removes a significant legal uncertainty for the company.

The agreement ensures that Zillow's strategic multifamily distribution partnership with Redfin will continue uninterrupted through at least the year 2030. Listings will continue to be shared across a broad network including Zillow, Trulia, HotPads, Rent.com, ApartmentGuide, Redfin, and Realtor.com.

This combined network offers property managers a competitive alternative to CoStar Group's Apartments.com. The syndication has already led to substantial growth, with multifamily listings on Redfin nearly quadrupling and Zillow's own inventory increasing by approximately 40%. In the second quarter of 2026, Zillow recorded a record 79,000 multifamily properties.

The company's rental revenue saw a 31% year-over-year increase, totaling $209 million for the quarter, primarily fueled by a 42% surge in multifamily ad sales. This performance places competitive pressure on Apartments.com's market position.

Looking ahead, both Zillow and Redfin plan to introduce standalone multifamily advertising products within the next six months, complementing their existing shared syndication network. Zillow aims to provide landlords with more flexible pricing options and capture ad spend from smaller property managers seeking single-site exposure.

Michael Sherman, general manager and SVP of Zillow Rentals, highlighted the positive impact of the Redfin partnership, stating it has enhanced access to listings and generated more leads for property managers while offering more choices to renters. He anticipates further marketplace support with the introduction of new advertising solutions.