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In a surprising story of rivals turned allies, portal giants Zillow and Redfin announced Tuesday that they’ve teamed up to share new construction listings.
The new partnership between the companies means new construction listings on Zillow will automatically be syndicated to Redfin. A statement from the companies says this will “dramatically expand the reach of homebuilder listings on Zillow and allow Redfin customers to explore a broader range of new-construction homes for sale, creating a seamless home-buying experience.”
Owen Gehrett, Zillow’s vice president and general manager of new construction, further explained in the statement that his company’s Community Pages give builders a place to “highlight all the amenities within a new-build community.” The pages are specifically designed for new construction communities, and according to Gehrett make Zillow a “standout platform” for homebuilders looking to connect to consumers.
“The partnership with Redfin extends this unique and valuable resource to a wider audience,” Gehrett also said. “It benefits homebuilders by expanding their reach to additional homebuyers, while empowering home shoppers to make confident and informed decisions, regardless of where they choose to shop.”
As part of the partnership, Redfin will begin to roll out new features that will be powered by Zillow’s Community Pages. The features will help buyers connect with homebuilders.
The partnership comes at a time when housing inventory remains at or near record lows in much of the U.S. That has in turn driven demand for new homes, which has in turn buoyed builder confidence.
Tuesday’s statement from Zillow and Redfin further bears this out, noting that “in June 2023, new single-family home sales were up 23.8 percent from a year ago.”
“Zillow’s latest market report shows there were 28 percent fewer new listings added to the market this June compared to last year,” the statement adds. “A Redfin analysis found that in the first half of 2023, one-third of single-family homes available for buyers to choose from were new construction, a record-high share.”
Rising consumer interest in new construction notwithstanding, the new partnership between Zillow and Redfin — which follows a previous relationship to syndicate 3D Home tours —
is notable and curious. The two companies operate using different business models — Zillow generates money by selling leads to agents, while Redfin is a brokerage — but also compete via their respective listing portals. They are consequently major players in the so-called portal wars, though their relationship has never boiled over into an acrimonious public feud the way CoStar’s beef with Zillow at times has.
In the past, Zillow and Redfin also competed as iBuyers, though both companies have since bowed out of that sector.
Zillow has also made a point of teaming up with erstwhile rivals. For example the portal giant currently partners with Opendoor to display the iBuyer’s cash offers on its website — despite the fact that not long ago Zillow was Opendoor’s chief competitor in the iBuying space.
In the case of the new partnership between Zillow and Redfin, Tuesday’s statement reveals that Zillow’s new construction listings should begin showing up on Redfin’s site in the fourth quarter of this year. And going forward, “Redfin will source non-MLS new-construction listings exclusively from Zillow,” the statement reveals, adding that “new-construction listings available through an MLS will still be discoverable on Redfin.”
Adam Wiener
Adam Wiener, Redfin’s president of real estate operations, expressed optimism about the partnership Tuesday, noting that his company’s customers are “increasingly turning to new construction.”
“Our Zillow partnership will help our customers discover more homes that fit their criteria,” Wiener said in the statement. “This is a win-win-win for our customers, agents and the builders who advertise with Zillow, who will now reach the homebuyers on Redfin.”
