Zillow Sparks Industry Rift with New Policy on Hidden Home Listings

A major shake-up is underway in the real estate world, as a new policy from Zillow has intensified an ongoing debate over how — and where — homes for sale should be advertised, Business Insider reports.

The move has triggered pushback from agents, rival platforms, and industry leaders, raising concerns that buyers and sellers could be left confused and disadvantaged in an already complex housing market.

The controversy centers on the practice of “exclusive inventory,” where real estate agents market properties privately or only on select platforms before making them widely available. This tactic, often used by large brokerages like Compass, allows agents to advertise listings on their own websites or within their networks before they appear on major search portals like Zillow or Realtor.com.

On Thursday, Zillow announced it would no longer allow such listings on its site. Under the new rule, any home marketed publicly but not shared across all platforms will be permanently banned from Zillow. The company said the move was intended to protect consumers and restore transparency.

“Fragmented listing access… creates frustration and distrust,” the company said.

Zillow’s stance has divided the industry. Two days after the announcement, Andy Florance, CEO of rival platform Homes.com and its parent company CoStar Group, sent a sharply worded email to thousands of real estate agents. In it, he accused Zillow of using its market dominance to exert undue control and labeled the policy “a pure power play of epic proportions.” He invited agents to move their listings to Homes.com instead.

With real estate sales sluggish, agent commissions shrinking, and competition among brokerages fierce, the fight over listing access reflects broader industry tensions. Zillow’s policy forces agents into a tough choice: list homes everywhere immediately — or risk having them shut out of the platform with the largest online audience.

“This is the spark,” said Mike DelPrete, a real estate tech strategist. “Now everybody has to have a position.”

Some brokerages have thrown their support behind Zillow’s new policy. eXp Realty and NextHome, which together represent thousands of agents nationwide, say they will comply. The Consumer Policy Center, a nonpartisan think tank, has also endorsed the rule, citing the importance of consistent access to home listings for consumers.

However, critics argue the policy could backfire. Brokerages may respond by doubling down on “office exclusives,” where listings are shared only within the firm’s internal network and never appear online at all. Others say Zillow is acting out of self-interest, worried that hidden inventory could erode its value to users and advertisers.

Amanda Orson, founder and CEO of Galleon, a real estate marketplace, said the move reveals Zillow’s vulnerability.

“It’s not the flex they think it is,” she said. “It’s a tell… They just telegraphed that not having all the inventory is their Achilles’ heel.”

Redfin, another major search portal, has implemented a similar policy and suggested an alternative solution: allowing agents to list homes publicly while hiding certain data like price changes and days on market, which some brokers say can harm sellers.

For consumers, the dispute could lead to further complications. Homebuyers may need to visit multiple websites to see all available properties, increasing the risk of missing listings altogether. Sellers may find their homes excluded from Zillow without fully understanding why. And with more than 500 local Multiple Listing Services (MLS) — each with its own rules — inconsistency is likely to continue.

Compass CEO Robert Reffkin has encouraged agents to stick with exclusive inventory strategies. In an internal message following Zillow’s announcement, he wrote:

“This moment goes beyond a policy — it’s about control versus choice.”

Some experts worry the ongoing confusion could attract attention from regulators.

“When the very rules of the game are unclear… that’s usually a sign that government intervention could be on the way,” said Saul Klein, CEO of the San Diego MLS.

In fact, Florance included a link in his email urging agents to contact the Department of Justice — a signal that legal or regulatory scrutiny could be the next phase of the battle.

“There’s something larger at stake than just who gets control of the inventory,” said Redfin CEO Glenn Kelman. “It’s the US housing market — and we’re supposed to care about that. But emotions are just running high right now.”