Attorneys general from five states have filed a lawsuit against online real estate brokerages Zillow and Redfin alleging anti-competitive practices in a rental syndication deal flagged by the U.S. Federal Trade Commission (FTC) in a lawsuit filed Sept. 30.
According to the FTC complaint, Zillow effectively bought Redfin’s share of the rental advertising market in a rental listing partnership worth $100 million. Redfin agreed to end contracts with existing advertisers and syndicate Zillow listings on its own website.
Prosecutors from Virginia, Arizona, Connecticut, New York and Washington now levy identical charges, claiming the partnership signed between Zillow and Redfin in February 2025 will lead to apartment managers charging higher rents.
“Defendants’ anticompetitive conduct has harmed these states’ respective economies and their general welfare by depriving them and their residents of the benefits of competition,” the states’ lawsuit reads, “including by eliminating head-to-head competition between direct competitors, likely resulting in reduced choice, higher prices, and reduced quality for multifamily rental advertising customers in these states.”
Though browsing their websites is free for renters, landlords pay a fee to list and advertise their rental properties on Zillow’s (and formerly Redfin’s) website. Redfin’s agreement to syndicate Zillow’s listings and stop competing for rental advertising further concentrates Zillow’s power to charge landlords higher listing fees.
Rocket Companies, the parent company of Rocket Mortgage, one of the largest mortgage lenders in the U.S., acquired Redfin in a $1.75 billion deal in July. Zillow and Redfin have each defended the partnership and its purported benefits against the FTC’s complaint.
A Zillow spokesperson wrote in a statement provided to Scotsman Guide that the partnership “is pro-competitive and pro-consumer by connecting property managers to more high-intent renters so they can fill their vacancies and more renters can get home.”
Meanwhile, in its statement provided to Scotsman Guide, Redfin said the company “strongly disagrees” with the allegations and “is confident we will be vindicated by a court of law.”
The FTC seeks to compel the companies to end the deal, which may involve divestiture of assets or even a requirement that Redfin rebuild its rentals advertising unit to restore competition.
