New York Attorney General Letitia James has joined a coalition of states in filing a lawsuit against Zillow Group, Inc. and Redfin Corporation. The suit alleges that the two companies engaged in an illegal agreement to end competition between them in the online apartment rental advertising market.
According to the lawsuit, Zillow paid Redfin $100 million in February 2025 to exit its apartment rental advertising business and transfer its clients to Zillow. The agreements included a Partnership Agreement and a Content License Agreement, which require Redfin to stay out of the multifamily advertising market for up to nine years and only display listings already shown on Zillow’s sites. The deal currently applies to buildings with 25 or more units but could expand further.
Attorney General James stated, “Millions of New Yorkers rely on online apartment listings to find an affordable and safe place to live. Zillow’s attempt to shut down its competition could drive up costs for advertisers and leave renters with fewer options when searching for a new apartment. New Yorkers are already struggling with an unaffordable housing market, and I will fight to stop this illegal deal that could make it even harder to find a home.”
The complaint notes that just three companies—Zillow, Redfin (which owns Rent.com), and CoStar (owner of Apartments.com)—control about 85 percent of the online apartment rental advertising market revenue. The suit claims that the agreements between Zillow and Redfin have reduced competition, potentially leading to higher prices for advertisers, lower-quality advertising services, and fewer choices for both landlords and renters.
The agreement also resulted in Redfin laying off around 450 employees from its multifamily rental advertising business. According to Attorney General James and her counterparts, these actions harm not only property owners seeking advertising but also prospective renters by reducing incentives for innovation among major platforms.
The coalition is asking the court for a ruling that would declare the agreements unlawful under federal antitrust laws. They are also seeking an injunction against future similar conduct by Zillow and Redfin, as well as measures such as divestiture or reconstruction of businesses aimed at restoring competition.
Attorneys general from Arizona, Connecticut, Washington, and Virginia have joined New York in bringing this action. In New York, Assistant Attorneys General Luisa Di Lauro and Michael Schwartz are leading the case under supervision from senior officials within the Antitrust Bureau.
