Zillow
| Company type | Public |
|---|---|
| Industry | Real estate, Technology |
| Founded | 2006 |
| Founder | Rich Barton, Lloyd Frink, Spencer Rascoff, David Beitel, Kristin Acker |
| Headquarters | Seattle, Washington , United States |
Area served | United States, Canada |
Key people | Jeremy Wacksman (CEO), Rich Barton (Co-executive Chairman), Lloyd Frink (Co-executive Chairman), Jun Choo (COO) |
| Products | Real estate marketplace, Online property listings, Home valuation tools (Zestimate), Mortgage marketplace |
Number of employees | 6,856 (2024) |
| Website | www |
Zillow Group, Inc., commonly referred to as Zillow, is a technology-driven real estate marketplace based in the United States, established in 2006. It was co-founded by Rich Barton and Lloyd Frink, both former Microsoft executives and creators of Expedia. Other notable founders include Spencer Rascoff, who co-founded Hotwire.com; David Beitel, serving as Zillow’s chief technology officer; and Kristin Acker, an advisor on technology leadership. Zillow primarily operates within the real estate sector, delivering digital solutions that facilitate connections among buyers, sellers, and renters via its online platform.
The firm's headquarters are located in the Russell Investments Center in Seattle, Washington. Zillow is publicly listed on NASDAQ with the ticker symbols Z (Class C shares) and ZG (Class A shares). In 2024, the company reported revenues totaling US$2.24 billion but recorded an operating loss of US$197 million alongside a net loss of US$112 million. Its total assets were valued at US$5.83 billion, with shareholders’ equity amounting to US$4.85 billion. Zillow employs roughly 6,856 individuals worldwide.
Zillow’s business strategy revolves around harnessing technology to revolutionize the conventional real estate market by offering extensive property listings, market insights, and cutting-edge tools tailored to both consumers and real estate professionals. The company’s portfolio includes subsidiaries such as HotPads, StreetEasy, and Trulia, which help broaden its presence across various regional markets.
The company’s executive leadership team comprises CEO Jeremy Wacksman, Co-executive Chairmen Rich Barton and Lloyd Frink, and COO Jun Choo. Zillow emphasizes growth through strategic leadership initiatives, acquisitions, and technological investments to sustain its competitive edge amid the dynamic real estate landscape.
Early history
Rich Barton, an entrepreneur who also founded Expedia.com, conceived the idea for Zillow during his tenure at Microsoft. His vision was to develop a consumer-oriented platform that would transform the real estate industry much like Expedia had done for travel. Recognizing a gap in the market for accessible online home listings complete with pricing and imagery, Barton sought to provide answers to critical questions about home valuations and purchase offers.
Zillow was officially incorporated in Washington state in December 2004. Barton teamed up with co-founder Lloyd Frink—another former Expedia executive—to self-finance the startup. The company began operations with a small team of 20 employees based out of Seattle. On February 8, 2006, Zillow launched its website featuring a home valuation tool available to all users. Initial features included sales history data and comparative analytics on home values. The launch experienced overwhelming demand that caused server outages.
In July 2006, Zillow raised $25 million in a second round of venture capital funding which enabled it to grow its staff to 118 employees. By December of that year, the platform introduced free listing services for home sellers to upload detailed property information online. These developments represented significant early progress in Zillow’s expansion within the real estate technology sector.
Expansion and growth
In April 2008, Zillow broadened its offerings by introducing a mortgage marketplace. Shortly thereafter, it released an iPhone application followed by versions compatible with Android and Windows Mobile devices, thereby strengthening its mobile footprint.
The company achieved profitability in 2010. In September of that year, Spencer Rascoff—previously COO and VP of marketing with Expedia experience—was appointed CEO while Rich Barton continued as executive chairman. Rascoff’s goal was to prepare Zillow for public trading; accordingly, on April 18, 2011, Zillow filed for an initial public offering (IPO) targeting $51.8 million. The company began trading on NASDAQ under the ticker "Z" on July 20, 2011, with an approximate valuation of $540 million.
Zillow’s first acquisition occurred in 2011 with Postlets, a platform designed to create and distribute real estate listings. The company pursued further strategic acquisitions including RentJuice and HotPads in 2012; StreetEasy in 2013; and notably Trulia—one of its main competitors—in a $2.5 billion transaction completed in 2015. These acquisitions significantly increased Zillow's market share and solidified its position as a leader in the online real estate marketplace industry.
2015 to present
Following the acquisition of Trulia, Zillow transformed into Zillow Group, integrating four distinct real estate brands: Zillow, Trulia, StreetEasy, and HotPads. In April 2018, the company introduced Zillow Offers, a home purchasing and selling service collaborating with local brokerages. By June of the same year, Zillow expanded its reach beyond the United States by partnering with Century 21 Canada to list properties in Canada, marking its initial foray into international markets.
In February 2019, co-founder Rich Barton resumed the role of CEO, succeeding Spencer Rascoff. By May, Zillow had broadened Zillow Offers to cover 20 additional markets, including major cities such as Los Angeles and Miami. At the onset of 2020 and amid the COVID-19 pandemic, Zillow’s stock value increased by 18% from a four-year low. The company responded by reducing costs by 25%, halting new hires temporarily, and subsequently permitting most employees to work remotely on a permanent basis. By March 2021, Zillow had onboarded roughly 1,500 new employees and announced plans to expand its workforce by 40%, adding over 2,000 positions nationwide.
In November 2021, CEO Barton declared the termination of Zillow Offers due to substantial financial losses—$420 million reported in Q3 2021—and implemented a reduction of 25% in staff. At that point, Zillow held ownership of approximately 7,000 homes acquired through this program.
By September 2024, Zillow collaborated with First Street to launch a Climate Risk Score aimed at assisting homebuyers. This tool evaluates environmental hazards such as flooding and wildfire exposure to improve transparency and facilitate more informed purchasing choices. This initiative reflects Zillow’s commitment to embedding pertinent data into its offerings to enhance the overall home-buying journey.
Business model
Zillow Group Inc operates as a real estate marketplace providing comprehensive services for purchasing, selling, renting, and financing properties through its website and mobile applications. In 2022, Zillow unveiled a "housing super app" strategy designed to unify the entire home transaction lifecycle—from property search through closing and relocation—intended to simplify user experience and boost revenue per transaction. The business framework is built around five key growth areas: property touring, financing solutions, expanding seller tools, strengthening partner networks, and service integration. Company leadership identifies these pillars as essential for driving both transaction volume and revenue growth.
Before 2023, Zillow’s operations were divided into three main segments: Internet, Media & Technology (IMT), Mortgages, and Homes. The platform connects buyers with real estate agents, mortgage providers, and advertisers while educating consumers to facilitate smoother transactions. Zillow’s evolving strategy highlights its focus on increasing market penetration and reinforcing its competitive positioning within the real estate sector.
Acquisitions
Zillow has pursued strategic acquisitions to grow its user base, enhance assets and capabilities, and accelerate expansion. Its initial acquisition was Postlets in 2011—a digital platform for real estate listings. In 2015, Zillow acquired its significant competitor Trulia for $2.5 billion, resulting in a combined control of approximately 70% of online real estate search traffic.
| Year | Key acquisitions |
|---|---|
| 2020s | ShowingTime, VRX Media, Follow Up Boss |
| 2010s | Dotloop, HotPads, Mortgage Lenders of America, Naked Apartments, RentJuice, StreetEasy, Trulia |
These acquisitions have bolstered Zillow’s market dominance while diversifying its portfolio across real estate listings, mortgage services, and marketing platforms—supporting both its business model and global footprint.
Services
Zillow's online and mobile platforms deliver a range of real estate services tailored to purchasing, selling, renting, and financing properties. Its revenue model facilitates connections between homebuyers, real estate agents, mortgage lenders, and advertisers targeting this audience. Many users engage with several services at once, such as sellers who are also purchasing homes or renters considering ownership.
At the core of the platform are real estate listings, supported by features designed to enhance this focus. As of 2023, Zillow's database encompassed roughly 160 million properties across the United States. It compiles property data from various sources including multiple listing service (MLS) feeds supplied by realtor organizations, alongside county records, tax information, and mortgage details.
Buyer services
Homebuyers can explore properties on Zillow by filtering searches based on location, price range, amenities, and other preferences. The platform also offers access to off-market listings to support thorough research. Through the Zillow Premier Agent program, buyers are connected with local real estate professionals.
Seller services
For sellers, Zillow provides a home valuation estimate called the "Zestimate," calculated using public records and comparable sales figures. Sellers can evaluate their Zestimate against actual sale prices within their neighborhood. The platform links sellers to local agents who offer market analysis, appraisals, and recommendations for home improvements to increase property value. Both sellers and agents benefit from Zillow’s listing tools that include AI-powered interactive elements and 3D floor plans. Agents also have access to professional photography and media services to enhance marketing campaigns.
Furthermore, sellers have the option to receive cash offers through Zillow’s collaboration with Opendoor, providing an alternative for expedited sales.
Renter services
Renters can apply for rental units and make payments directly through Zillow’s platform. Landlords utilize the system to manage applications, perform background and credit screenings, and accept rent payments.
Financing services
Zillow Home Loans, an affiliated lender, offers mortgage products including purchase loans and refinancing options, as well as guidance on down payment assistance programs.
Zestimate
Zillow's proprietary "Zestimate" calculates estimated home values by analyzing publicly available information such as sales data from comparable properties. This serves as an initial reference point for assessing property worth, with accuracy varying depending on local data quality. Users can compare Zestimates with actual sales figures in their area.
In March 2011, Zillow launched Rent Zestimates to approximate rental prices for approximately 90 million homes. On June 14, 2011, the company updated its Zestimate algorithm to revise both current and historical home valuations dating back to 2006. A further enhancement was made on June 15, 2021, refining the Zestimate model for off-market properties by better incorporating local market trends, seasonal patterns, and additional historical data to improve precision.
Accuracy
A 2007 review by The Wall Street Journal found Zillow's estimates generally reliable, often within a small percentage margin of actual sale prices though occasional significant discrepancies occurred. In 2006, the National Community Reinvestment Coalition filed a complaint alleging that Zillow's Automated Valuation Model (AVM) was misleading; however, the Federal Trade Commission chose not to pursue an investigation and the complaint was eventually withdrawn. By July 2016, Zillow reported that the average nationwide Zestimate error was approximately $14,000.
Controversy and litigation
Zillow's home valuation approach places significant weight on property square footage, frequently underrepresenting elements such as a home's age, condition, and distinctive characteristics, which can lead to skewed market perceptions. To mitigate this, the platform permits homeowners to provide their own value estimates, although these inputs may be subjective.
In 2014, several former employees from Zillow's Irvine, California location filed lawsuits alleging labor law breaches, including unpaid wages and overtime compensation. The U.S. District Court authorized a class action suit encompassing inside sales consultants employed between 2010 and 2015. Additionally, attorneys Bobby Samini and Mark Geragos represented a sexual harassment claim accusing Zillow’s Southern California office of maintaining a hostile workplace atmosphere. While Zillow denied the allegations, the company resolved the matter in 2016 through a settlement of undisclosed terms without admitting liability.
In 2017, Zillow issued a cease-and-desist notice to Kate Wagner, who runs the real estate commentary blog McMansion Hell. With legal support from the Electronic Frontier Foundation, Wagner successfully prompted Zillow to withdraw its legal pursuit.
In June 2025, the real estate brokerage Compass, Inc. initiated legal action against Zillow, alleging violations of federal antitrust laws tied to Zillow’s policy that prohibits listings from appearing on its site if they are not posted within 24 hours. This rule specifically affected Compass’s "Private Exclusives" listings—approximately 7,000 properties temporarily accessible only to Compass agents and their clients.