HARTFORD, CT — Connecticut’s Attorney General, William Tong, has initiated an antitrust lawsuit against Zillow and Redfin, alleging that the two real estate technology leaders have engaged in a $100 million anticompetitive agreement that could further inflate rent prices for families and renters in Connecticut and across the country.
Tong has teamed up with a coalition of multiple states, including Arizona, New York, Virginia, and Washington, and is collaborating closely with the Federal Trade Commission (FTC). The lawsuit, which was filed today, asserts that this agreement grants Zillow an unfair advantage in the market and breaches federal antitrust regulations by suppressing competition in the rental housing listing sector.
“Rent is completely unaffordable right now, and this deal is going to make things worse,” said Tong. “We’re going to continue to use every inch of our joint state and federal law enforcement authority to give families a fair shot at an affordable home.”
What’s at the Heart of the Lawsuit?
In February 2025, Zillow reportedly paid Redfin $100 million in a deal that effectively pushed Redfin out of the Internet Listing Services (ILS) market for multifamily rental properties.
Under the agreement:
- Redfin agreed to terminate all multifamily property contracts.
- Redfin’s rental listings on platforms like Rent.com became mere mirrors of Zillow’s content.
- Redfin handed over competitively sensitive information and customers to Zillow.
- Redfin agreed not to compete with Zillow in the multifamily rental market for up to nine years.
The lawsuit claims that this action has intensified the ongoing contraction of the ILS market. Zillow had previously taken over significant competitors such as Trulia and HotPads, while Redfin had integrated Apartmentguide.com and Rent.com. Collectively, Zillow, Redfin, and their rival CoStar (which owns Apartments.com) represented 85% of ILS revenue in the United States before the agreement.
Legal Allegations
The lawsuit alleges the Zillow-Redfin deal violates:
- Section 1 of the Sherman Act (illegal agreement in restraint of trade).
- Section 7 of the Clayton Act (anticompetitive acquisitions).
According to the complaint, Zillow’s exclusive control over Redfin’s rental traffic will likely lead to:
- Higher advertising costs for property managers.
- Increased rent prices passed on to tenants.
- Lower quality and innovation in rental listing services.
Tong’s office warns that the consolidation reduces consumer choice and weakens market checks on pricing, leaving renters more vulnerable to rising housing costs.
“Millions of New Yorkers rely on online apartment listings to find an affordable and safe place to live,” said New York Attorney General James. “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.”
Second Major Antitrust Action on Rent
This marks the second significant lawsuit that Attorney General Tong has initiated against rent inflation. In August 2024, he collaborated with the DOJ to file a lawsuit against RealPage, a firm alleged to have employed algorithmic pricing to conspire with prominent landlords and raise rental prices. In January 2025, that case was broadened to encompass six of the largest landlords in the country, claiming they exchanged pricing information and synchronized rent increases via software applications.
“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,” Tong stated.
Experts say that if the lawsuit is successful, it could force Zillow and Redfin to unwind the deal, restoring competitive pressure in the rental listings market and potentially slowing rent increases. However, legal battles over antitrust issues can be complex and may take months or years to resolve.
Legal Team Involved:
- Assistant Attorney General Julián Quiñones
- Deputy Associate AG & Antitrust Section Chief Nicole Demers
Tong emphasized that his office is committed to pursuing unfair market practices that contribute to skyrocketing housing costs, stating that both state and federal enforcers are “united in the fight to protect renters and restore fair housing markets.”
