Five States Sue Zillow and Redfin Over Antitrust Concerns

Five states on Wednesday sued Zillow and Redfin, alleging that the two online real estate and rental companies violated federal antitrust laws, and suppressed market competition. The lawsuit was filed one day after the Federal Trade Commission (FTC) launched similar legal action.

The Details: Attorneys general from Virginia, Washington, Arizona, Connecticut, and New York filed the joint lawsuit in the US District Court for the Eastern District of Virginia. The case centers on a $100 million agreement reached in February, in which Zillow acquired Redfin's apartment rental advertising business and its clients. The suit also alleges their February agreement violates the Sherman and Clayton Acts. The FTC lawsuit alleges the deal constitutes an illegal effort to eliminate Redfin as a competitor in the multifamily rental property listings market.

For Context: Since 2012, Zillow, Redfin, and CoStar have expanded through acquisitions of major rental platforms, including Trulia, Rent.com, Apartments.com, and ApartmentFinder. According to the states' complaint, the three companies together controlled about 85% of US listing-services revenue by early 2025. 

How the Media Covered It: The story was mostly covered by local news outlets. Arizona's Family (Center) reported on previous acquisitions by Zillow, Redfin, and CoStar. The Seattle Times (Center) quoted AGs from Washington and Connecticut who highlighted an ongoing housing crisis and unaffordable rent costs. It also mentioned other legal action against Zillow in the past few months. Straight Arrow News (Center) covered FTC's lawsuit, and quoted a Zillow spokesperson who described the February deal as "pro-competitive and pro-consumer," while a Redfin spokesperson said the company "strongly disagrees with the FTC's allegations." CNBC (Lean Left) also included responses from Zillow and Redfin, and reported shares of Zillow and Redfin's parent company Rocket Companies traded lower following the announcement. An August article from the Daily Mail (Right) quoted Zillow CEO, Jeremy Wacksman saying the problem with the housing market was "an affordability crisis, which is driven by an availability crisis. It is a supply-side problem."

Written by the AllSides staff (of humans). Learn more. Support our mission. Suggest an improvement to this summary.