New York Attorney General Letitia James and the Federal Trade Commission have reached a settlement with Zillow Group Inc. and Redfin Corp. that requires the companies to restore competition in the apartment rental advertising market.
The settlement follows a lawsuit filed in October 2025 by James and attorneys general from Arizona, Connecticut, Washington and Virginia, along with the FTC.
The case challenged agreements signed by Zillow and Redfin on Feb. 6, 2025, under which Zillow paid Redfin $100 million to shut down its multifamily rental advertising business and transfer its customers to Zillow.
Redfin also agreed to stay out of the market for up to nine years and display Zillow’s apartment listings on its websites.
“Online rental listing platforms are critical tools that New Yorkers rely on to find affordable homes,” said Attorney General James. “Zillow and Redfin’s illegal agreement to stop competing threatened to raise costs for both renters and landlords and make it harder for New Yorkers to find a place to live. After we took action to enforce the law, Zillow and Redfin will continue to compete and invest in improving their services.”
The arrangement affected a market used by renters searching for apartments and property managers advertising available units. The lawsuit alleged that eliminating competition between Zillow and Redfin could lead to higher advertising costs, fewer choices and lower-quality rental services.
Those concerns are particularly relevant in New York, where renters rely heavily on online platforms to search for available housing.
Under the settlement, Redfin must rebuild its apartment advertising business, hire staff to acquire and maintain customers and resume selling its own advertising products. It will also be able to list its own apartment units instead of exclusively displaying Zillow listings.
Zillow and Redfin must remove provisions that prevent Redfin from competing independently and are barred from entering similar anticompetitive agreements in the future. The companies also must pay the states and FTC $2 million.
The settlement restores the ability of Zillow and Redfin to compete for renters and property managers while allowing Redfin to develop its own rental advertising operation. Reuters reported that Redfin can continue its rental partnership with Zillow through at least 2030 as it builds its standalone business.
The agreement resolves the antitrust dispute without the scheduled federal trial proceeding. It is expected to give renters and property managers more choice as both companies resume investing in their rental platforms and advertising services.
