Zillow Stock Falls 4.9% as Google Expands Home Listings to All 50 States
Mondeum Capital (UK) Limited
Google is moving into the real estate search market, and housing stocks are reacting. Zillow shares fell 4.9% on Thursday, heading for their lowest close since December 2022, after Alphabet said it would add home listings to mobile search results in all 50 states. CoStar shares also dropped 3.6% on the news. Here’s what Google’s expansion means for companies that rely on real estate search traffic.
Google is teaming up with HouseCanary, a private real estate data platform that gets listings from the nationwide multiple listing service network. When users search for phrases like “homes for sale in a specific city,” they can view photos, read property details, and contact a listing agent who pays Google for the lead, all within Google’s search results. This feature works on mobile devices and includes agent contact details and the option to book appointments.
This isn’t the first time Google has tried this approach, but now it’s getting bigger. Google tested the program in cities like Cleveland, Miami, Chicago, Austin, New York, San Diego, Los Angeles, and the Bay Area before announcing the wider rollout on Thursday. When news of the pilot came out in mid-December, shares of Zillow, CoStar, and Rocket dropped. Thursday’s announcement confirms the test is now a permanent product.
Zillow told Barron’s that 80% of its traffic comes straight to its platform instead of through outside search, which the company says helps protect it from Google’s push into the market. Zillow is also growing its mortgage and rental services as part of a larger plan to become a one-stop housing app.
CoStar has been putting money into artificial intelligence and its own data, which it says are mostly protected from tech disruption. In May, the company also announced it had bought Zonda, a firm that provides home-building data and analytics.
Rocket, which owns the Redfin listings platform, went against the trend and rose about 1% on Thursday. The company did not respond right away to a request for comment.
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