FTC Settlement Forces Redfin to Rebuild Rental Listings Business

The U.S. Federal Trade Commission announced a settlement on Monday, August 24, 2026, with real estate platforms Zillow and Redfin, forcing the companies to unwind a controversial 2025 deal that regulators said illegally suppressed competition in the online rental advertising market. The agreement, which came just as a trial was set to begin, requires Redfin to rebuild its independent rental listings business within six months and invest in becoming a stronger competitor.

The FTC had alleged that in February 2025, Zillow paid Redfin $100 million to exit the market for multifamily rental advertising. Under that original arrangement, Redfin agreed to shut down its own rental advertising operation, transfer its customers to Zillow, and refrain from competing for up to nine years. Redfin would instead exclusively repost apartment listings supplied by Zillow. The FTC and five state attorneys general filed a lawsuit in September 2025, arguing the deal violated antitrust laws by removing a major competitor, likely leading to higher prices and reduced innovation.

According to the FTC, data showed that after the agreement took effect, advertising costs for landlords on Zillow’s platform...