Connecticut Attorney General William Tong on Wednesday announced he has joined the Federal Trade Commission and attorneys general from four other states in suing Zillow and Redfin, alleging the real estate platforms struck a $100 million deal that unlawfully reduces competition in the rental housing market and threatens to drive up costs for renters.
Connecticut Attorney General William Tong on Wednesday announced he has joined the Federal Trade Commission and attorneys general from four other states in suing Zillow and Redfin, alleging the real estate platforms struck a $100 million deal that unlawfully reduces competition in the rental housing market and threatens to drive up costs for renters.
The
complaint, filed in U.S. District Court for the Eastern District of Virginia, Alexandria Division, claims Zillow and Redfin violated the Sherman and Clayton antitrust acts by entering into an agreement that eliminates Redfin as a competitor in the market for multifamily rental listings.
“Rent is completely unaffordable right now, and this deal is going to make things worse,” Tong said in a statement. “This unfair and anticompetitive agreement between listing giants Zillow and Redfin will jack up costs for property managers, who will pass those costs on to renters.”
Internet Listing Services (ILS) like Zillow and Redfin charge property management companies to advertise large rental portfolios. Renters typically access the platforms for free. Over the past decade, the industry has consolidated, with Zillow acquiring Trulia and HotPad, while Redfin added Rent.com, Apartmentguide.com and other sites.
Before the February 2025 deal, Zillow, CoStar and Redfin accounted for 85% of ILS revenue nationwide.
On Feb. 6, Zillow paid Redfin $100 million to exit the multifamily listings market. Under the arrangement, Redfin’s rental sites now function only as mirrors of Zillow’s platform, while Redfin agreed not to compete in multifamily advertising for up to nine years. The company also agreed to terminate contracts with its multifamily clients, introduce Zillow sales representatives to its customers and provide access to competitively sensitive information.
Regulators say the agreement cements Zillow’s market dominance and leaves property managers and renters with fewer choices. The complaint alleges that reduced competition will allow Zillow to raise listing fees, cut service quality and increase costs that may be passed on to renters in higher rents and transaction fees.
In addition to Tong in Connecticut, attorneys general from Arizona, New York, Virginia and Washington also joined the FTC lawsuit.
This is the second major antitrust action Tong has joined to address rising housing costs. In August 2024, he joined the U.S. Department of Justice in suing RealPage, accusing the software company of coordinating rent prices through shared algorithms with some of the nation’s largest landlords. That case is still pending.
“Families deserve a fair shot at an affordable home,” Tong said. “We’re going to continue to use every inch of our joint state and federal law enforcement authority to protect renters from illegal schemes that push housing even further out of reach.”
