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CoStar buys new-home data provider Zonda

CoStar buys new-home data provider Zonda

Money Moves

An $800 million cash deal pushes the commercial-data giant deeper into residential real estate

Yesterday: Zonda deal closes

Overview

Updated 1 hour ago

CoStar Group already runs the data pipes behind much of U.S. commercial real estate. On August 21, it closed an $800 million all-cash purchase of Zonda, the main data provider for the new-home construction business.

The deal hands one company detailed information on both existing homes and homes still being built. That covers a market worth about $400 billion in annual U.S. new-home sales, an area CoStar had barely touched.

Why it matters

One company now holds data on both existing homes and new construction, shaping the information builders, agents, and buyers rely on to price property.

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Key Indicators

$800M
Deal value
All-cash price CoStar paid for Zonda.
$400B
New-home market
Approximate annual U.S. new-home sales CoStar is targeting.
$170M
Zonda 2025 revenue
Zonda's reported revenue last year, at a 23% adjusted margin.
3,000+
Zonda customers
Builders, developers, suppliers, and lenders across North America.
~4.7x
Revenue multiple
The $800M price is roughly 4.7 times Zonda's 2025 revenue.

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People Involved

Organizations Involved

Timeline

February 2025 August 2026

4 events Latest: Yesterday
Tap a bar to jump to that date
  1. Zonda deal closes

    Latest Acquisition

    CoStar completes the $800 million purchase, folding Zonda into its residential division.

  2. CoStar agrees to buy Zonda for $800 million

    Announcement

    The two companies announce an all-cash deal to bring new-home data and marketplaces into CoStar.

  3. CoStar closes $1.6 billion Matterport deal

    Acquisition

    CoStar buys the 3D digital-twin firm Matterport, adding spatial imaging to its residential toolkit.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2011-2012

CoStar acquires LoopNet (2012)

CoStar agreed to buy LoopNet, the leading online marketplace for commercial property, for about $860 million. Regulators at the Federal Trade Commission reviewed the deal and required CoStar to sell some data assets before it closed.

Then

CoStar absorbed its biggest commercial-listings rival and settled the antitrust concerns through a divestiture.

Now

The purchase helped CoStar lock up commercial real-estate data and marketplaces, the base it now uses to fund its residential push.

Why this matters now

The Zonda deal follows the same playbook: buy the main data provider in a market, then bolt on marketplaces to dominate the information flow.

July 2014-February 2015

Zillow acquires Trulia (2015)

Zillow agreed to buy rival portal Trulia in a stock deal initially valued at about $3.5 billion. The two largest home-search sites combined into one company.

Then

Zillow became the clear leader in online home search, controlling most consumer traffic.

Now

The merger set up today's portal fight, in which CoStar's Homes.com is trying to break Zillow's grip on residential listings.

Why this matters now

It shows how consolidation reshaped residential real-estate data before, and why CoStar is spending to build a rival at scale.

November 2021

Zillow shuts down home-flipping business (2021)

Zillow closed Zillow Offers, its program to buy and resell homes, after its pricing models misjudged the market. The company took more than $500 million in write-downs and cut about a quarter of its staff.

Then

Zillow exited home-flipping and refocused on its core listings and software business.

Now

The episode became a warning about a data company overreaching into an unfamiliar, capital-heavy market.

Why this matters now

CoStar's costly move into new-home construction carries the same risk: deep data does not guarantee success in a new corner of housing.

Sources

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