FTC Takes Zillow and Redfin Rentals Deal to Court—What It Means for Renters

The Federal Trade Commission is suing Zillow and Redfin over a controversial rentals deal that the agency says stifles competition in the apartment listing market.

This legal showdown could reshape how millions of Americans search for apartments.

Zillow paid $100 million—why the FTC objects

The complaint, filed in the U.S. District Court for the Eastern District of Virginia, claims that Zillow paid Redfin $100 million to become the exclusive provider of multifamily rental listings on Redfin, Rent.com, and ApartmentGuide.com.

The FTC argues this move blocks competition in a sector crucial for renters and property managers.

Daniel Guarnera, director of the FTC’s Bureau of Competition, said:
“Zillow paid to remove Redfin as an independent competitor in a concentrated market—one that matters for renters, landlords, and the health of the U.S. housing system. Americans deserve robust competition between platforms like Zillow and Redfin.”

Zillow’s defense

Zillow insists the deal is “pro-competitive and pro-consumer,” claiming it gives renters broader access to listings and helps property managers connect with serious renters faster.

From fierce rivals to business partners

Before the deal, Zillow, Redfin, and CoStar (via Apartments.com) were “competing fiercely” for rental listings.

Under the agreement, Redfin reportedly agreed not to sell multifamily advertising for up to nine years, terminate existing contracts, and transfer sensitive advertising information to Zillow.

Around 450 Redfin employees who supported rental listings were affected, with some transitioning to Zillow.

The FTC argues this effectively turns Redfin into a Zillow copycat, eliminating independent competition and harming renters and advertisers with fewer choices, higher prices, and lower-quality service.

What the FTC is demanding

The complaint cites violations of the Sherman Act, Clayton Act, and FTC Act. The agency is asking for:

• Permanent injunctions against the alleged anticompetitive behavior
• Possible divestiture of assets or business restructuring
• Periodic compliance reporting to the FTC

The ruling could reshape online apartment listings, affecting millions of renters and property managers nationwide.