Redfin must re-enter the market for rental listings to resolve antitrust allegations, according to a proposed order by the Federal Trade Commission.
The order, the result of an FTC complaint filed late last year, would preserve the listing syndication agreement between Zillow Group and Redfin while requiring that Redfin build back its rentals business.
Zillow stock was climbing on a resolution to one of the lawsuits that has been weighing on the stock. Shares were up 2.9% in late Monday morning and on track for its highest close since mid-May, according to Dow Jones Market Data.
Zillow investors were likely breathing a sign of relief that one of the company's legal headwinds was clearing. Shares of Rocket, the mortgage company that owns Redfin, were about flat.
The potential upshot for prospective renters is that Redfin would restart its rental listings business, which the FTC alleged it had exited as a result of the $100 million agreement it signed with Zillow in early 2025.
"This settlement delivers better, quicker, more certain results for both renters and property management companies than we would have been able to achieve after prevailing at trial, including firm and enforceable commitments by Redfin to relaunch its rentals advertising business," Daniel Guarnera, director of the FTC's Bureau of Competition, said in a statement.
A larger pool of rentals may not be noticeable as a result of the settlement. Zillow and Redfin will continue to syndicate listings across their brands.
But Redfin's relaunch introduces competitive pressure to the listings landscape. That could temper listing costs for property management companies which could, in turn, result in fewer fees flowing down to renters.
Redfin will restart its rental advertising business within six months of the order being completed "with significantly more listings than it had prior to the 2025 agreement," the FTC wrote. "Redfin has committed to spend millions of dollars to grow its ILS business and to make substantial investments in the business for years to come."
Both Redfin and Zillow in statements characterized the order as a "win" for the respective companies.
"This positive resolution enables us to keep our energy on innovating for renters and property managers, and ultimately making renting easier, more affordable and better for everyone," Zillow Rentals general manager Michael Sherman said in a statement.
"Consumers will continue to have access to the rental inventory they rely on today, while we build a stronger Redfin that can meet them at any stage-from their first rental to their first home and beyond," a Redfin spokesperson said.
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