Key Intake
Q1: How does Zillow make money?
Zillow generates revenue primarily through its Premier Agent advertising program, rental marketplace services, and mortgage partnerships
Q2: Does Zillow charge a fee?
No, Zillow doesn’t charge consumers to browse, list, or use most of its tools. However, real estate agents, landlords, and advertisers pay fees for premium placements, leads, and boosted visibility.
Q3: Who is Zillow’s biggest competitor?
Zillow’s biggest competitors are Realtor.com, Redfin, and Homes.com, each offering property listings, agent connections, and home valuation tools targeting the same U.S. housing market.
Q4: Can I list my house on Zillow without a realtor?
Yes, you can. Zillow allows homeowners to post For Sale By Owner (FSBO) listings for free, appearing alongside agent-listed properties to attract direct buyer interest.
Q5: How does Zillow get their prices?
Zillow pulls pricing data from MLS databases, public county records, and user-submitted updates, using machine learning algorithms to calculate its famous Zestimate values.
Q6: How close is Zillow to actual value?
Zillow’s Zestimate has a median error rate of about 2–3% for on-market homes, meaning it’s generally close but not perfect, useful for estimates, not appraisals.
Table of Contents
Introduction
How does Zillow make money? Zillow isn’t just a home-search tool, it’s a multibillion-dollar machine built around attention, data, and advertising. The company turned over $2.2 billion in revenue in 2024 by monetizing the same listings you browse for free. The genius of how Zillow makes money lies in its strategy: it gives consumers free access, then charges professionals for the visibility they need.
According to Zillow Group’s latest filings, about 70% of total revenue comes from agent advertising and lead generation, making it one of the most profitable and data-driven PropTech ecosystems in the world.
Unlock More Insights
Quick Answer
Zillow generates revenue primarily through its Premier Agent advertising program, rental marketplace services, and mortgage partnerships, earning over $2.2 billion annually by monetizing 243 million monthly users without charging consumers for basic property search features.
What Is Zillow’s Main Source of Income?
Zillow’s primary revenue source is its Premier Agent program, where real estate agents pay for advertising placement and exclusive access to buyer leads. This program generated roughly $1.6 billion, around 70% of Zillow’s 2024 revenue (Zillow Group, 2024 Annual Report).
Here’s how it works?
- Agents bid for specific ZIP codes.
- The higher they spend, the more exposure they get.
- Zillow connects those agents to users browsing listings in their chosen area.
Think of it as Google Ads meets real estate, except in how does Zillow make money, Zillow sells attention instead of clicks.
The Two-Sided Marketplace
Zillow’s brilliance lies in its ecosystem. Consumers get free tools, which attract millions of daily visitors. On the other side, professionals pay to access that attention stream through paid placements and data insights. This dual-market approach perfectly represents how does Zillow make money, creating recurring, scalable revenue without charging everyday users.
This dual-market approach creates recurring, scalable revenue without charging everyday users.
All confused? Try watching this short video to get a complete insight of Zillow income sources:
This is how ZILLOW makes money
Is Zillow Completely Free for Homeowners and Buyers?
Yes, Zillow’s core tools are completely free for consumers.
Anyone can browse homes, use mortgage calculators, and even list a property “For Sale by Owner” without paying a dime.
Free consumer tools include:
- Home search and saved favorites
- Zestimate valuations
- Listing alerts and mortgage pre-approvals
The “hidden” cost? Zillow’s algorithms often prioritize paid agent listings, meaning users might see agents who’ve bought visibility rather than the most local or relevant professional. It’s not deceptive, just the logic of the marketplace.
Popular myths vs facts relating Zillow
| Myth | Fact | Source |
| Listing a home for sale on Zillow is expensive for homeowners. | It is free for homeowners and real estate agents to list properties for sale on Zillow. | Real Estate Witch, Anytime Estimate, Homes By One Team |
| Zillow’s Zestimate is perfectly accurate for real estate valuations. | Zillow’s Zestimate led to overestimations and losses in iBuying, proving it’s not reliable for high-stakes purchases. | Quora: How did Zillow make such a miscalculation on its flip business? |
| Zillow makes money by taking a commission from home sales. | Zillow’s primary revenue comes from advertising sold to real estate agents through its Premier Agent program, not from commissions on home sales. | The Motley Fool, Business Strategy Hub |
| Zillow charges users for accessing listings. | Listings are free for users; revenue comes from B2B services like agent profiles and mortgage leads. | LinkedIn: How Does Zillow Make Money: A Complete Guide? |
| Zillow’s iBuying program, Zillow Offers, was a major success. | Zillow shut down its iBuying division, Zillow Offers, in 2021 after it proved to be unprofitable. | RadiusTheme |
If you are interested to know the journey of Zillow then i highly recommend watching:
EP 174 – From Zillow myths to stock market wins: A practical money talk w/ Ashley Marx
How Does Zillow Make Money from Rentals?
Zillow’s rental business is now its fastest-growing segment, bringing in $453 million in 2024. While basic rental listings are free, the platform monetizes through premium visibility upgrades and application processing fees.
Key revenue drivers:
- Listing Boosts: Landlords can pay to feature or “pin” their property higher in search results.
- Application Fees: Zillow charges tenants for background checks and credit screenings.
- Partner Integrations: Property managers can connect rental software tools like Buildium or Yardi for added cost.
In short, how does Zillow make money in rentals mirrors a freemium SaaS model monetizing optional upgrades without excluding small landlords.
Personal insights (Reddit comment)
How Does Zillow’s Mortgage Business Work?
Zillow also earns from Zillow Home Loans, a division that originates mortgages and sells leads to external lenders. In 2025, this unit’s revenue grew 41% year-over-year, making it Zillow’s most promising future vertical.
How does Zillow make money from mortgages?
- Loan Origination Fees: Zillow earns fees by processing mortgages directly.
- Lead Referrals: When users check rates or pre-qualify, those leads are sold to partner lenders.
- In-App Financing: Tools like mortgage calculators seamlessly push users toward Zillow’s financing partners.
This integration converts user intent into financial transactions, a data-driven funnel from search to closing.
Why Did Zillow Stop Buying Houses?
In 2021, Zillow shut down its iBuying program, Zillow Offers, after losing over $420 million in one quarter. The model failed because price algorithms couldn’t accurately forecast short-term housing fluctuations.
The iBuying failure:
Zillow was purchasing homes directly, making repairs, and reselling for profit. When market conditions shifted, its predictive pricing lagged, leading to heavy losses and inventory write-offs.
The strategic pivot:
After this collapse, Zillow refocused on its profitable strengths, digital lead generation, marketing, and financial services, shedding the high-risk real estate ownership model.
The Financial Sustainability Question
Zillow is a revenue powerhouse but a profit struggler. Despite earning over $2.2 billion in 2024, it posted a net loss of $112 million.
Zillow’s Financial Performance (2019–2024)
| Year | Revenue | Net Income |
| 2019 | $1.37B | -$305M |
| 2020 | $1.62B | -$162M |
| 2021 | $2.13B | -$527M |
| 2022 | $1.96B | -$528M |
| 2023 | $1.94B | -$158M |
| 2024 | $2.23B | -$112M |
For Investors:
The pattern signals a company investing heavily in growth and technology, prioritizing market dominance over short-term profits. Its long-term bet is on data-driven advertising, mortgage expansion, and monetized traffic, all core pillars of how does Zillow make money going forward.
Does Zillow Make Money from the Zestimate?
The Zestimate itself doesn’t earn direct revenue, but it’s Zillow’s biggest engagement magnet. It drives millions of repeat visits, powering ad impressions and agent leads.
How it supports revenue:
- The Zestimate keeps homeowners returning, fueling traffic for ads.
- Each interaction strengthens Zillow’s data algorithms, which improve user targeting.
- More data → better estimates → more trust → more ad inventory.
In essence, the Zestimate is a user-retention loop disguised as a free valuation tool.
What’s Next for Zillow’s Business Model?
After exiting iBuying, Zillow is building toward a “super app” for real estate, a unified digital hub where users can browse, finance, rent, and close deals in one experience.
The “Super App” vision:
- Combine rentals, mortgages, and agent connections in one platform.
- Integrate tools like ShowingTime+ and dotloop for end-to-end transaction management.
- Use AI to personalize listings, pricing insights, and financing options.
Growth areas:
- Rental marketplace expansion (highest margin growth).
- Adjacent financial products (insurance, title, closing).
- Embedded AI for lead matching and predictive search.
The next decade of Zillow won’t be about listings, it’ll be about owning the entire real-estate journey.
Sources
The insights in this article are backed by credible industry research and official financial disclosures:
- Zillow Group Investor Reports: Official quarterly and annual financial statements detailing Zillow’s 2025 revenue, profit margins, and business segments.
- Business Model Analyst: Zillow Business Model: How Does Zillow Make Money. Comprehensive breakdown of Zillow’s revenue structure and evolving monetization channels.
- Yahoo Finance: Zillow Group, Inc. (Z) Income Statement. Verified data on Zillow’s income trends, growth patterns, and market capitalization.
- Prismetric: Decoding Zillow’s Business Model: Lessons for Startups. Strategic insights into how Zillow’s tech-driven model inspires real estate innovation.
- Bloomberg: Zillow Shuts Home-Flipping Business After Racking Up Losses. Analytical reporting on Zillow’s iBuying exit and financial restructuring decisions.
Conclusion
How does Zillow make money? It thrives by converting massive user attention into high-value advertising and lead sales. By keeping its core tools free for buyers and sellers, Zillow attracts millions of users monthly, fueling a data-driven ecosystem that agents and lenders pay to access.
Its Premier Agent program remains the backbone of its revenue, while rentals, mortgages, and software tools add depth and diversification. Ultimately, Zillow’s business model shows how trust, traffic, and tech can turn real estate browsing into a multibillion-dollar engine.
Author Bio
Taylor Hensley is a Real Estate Market Analyst with an experience of 9 years in studying PropTech business models, monetization strategies, and digital transformation in housing markets across North America.
