An $800 million cash deal pushes the commercial-data giant deeper into residential real estate
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Overview
Updated 1 hour agoCoStar 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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People Involved
Organizations Involved
CoStar sells property data, analytics, and listing marketplaces, long dominant in commercial real estate and now spending to enter residential.
Zonda supplies data, software, and marketplaces for the new-home construction industry, serving more than 3,000 builders, developers, suppliers, and lenders.
Timeline
February 2025 August 2026
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Zonda deal closes
Latest AcquisitionCoStar completes the $800 million purchase, folding Zonda into its residential division.
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CoStar and Zillow escalate legal fight
LegalCoStar sues Zillow over alleged mass use of its listing images, part of a wider dispute over listings.
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CoStar agrees to buy Zonda for $800 million
AnnouncementThe two companies announce an all-cash deal to bring new-home data and marketplaces into CoStar.
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CoStar closes $1.6 billion Matterport deal
AcquisitionCoStar 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.
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.
CoStar absorbed its biggest commercial-listings rival and settled the antitrust concerns through a divestiture.
The purchase helped CoStar lock up commercial real-estate data and marketplaces, the base it now uses to fund its residential push.
The Zonda deal follows the same playbook: buy the main data provider in a market, then bolt on marketplaces to dominate the information flow.
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.
Zillow became the clear leader in online home search, controlling most consumer traffic.
The merger set up today's portal fight, in which CoStar's Homes.com is trying to break Zillow's grip on residential listings.
It shows how consolidation reshaped residential real-estate data before, and why CoStar is spending to build a rival at scale.
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.
Zillow exited home-flipping and refocused on its core listings and software business.
The episode became a warning about a data company overreaching into an unfamiliar, capital-heavy market.
CoStar's costly move into new-home construction carries the same risk: deep data does not guarantee success in a new corner of housing.
