Attorney General Tong Files Antitrust Suit Against Zillow and Redfin for Driving Up Rents
Attorney General William Tong is taking on two of the biggest names in online real estate — Zillow and Redfin — in a new lawsuit that he says could have major consequences for renters in Connecticut and across the country.
Tong announced that Connecticut has joined forces with the attorneys general of Arizona, New York, Virginia, and Washington, along with the Federal Trade Commission, in suing Zillow and Redfin over what’s being described as a $100 million anticompetitive deal. The agreement, Tong says, gives Zillow unfair control of the rental listings market and could drive rent prices even higher for families already struggling with housing costs.
“Rent is completely unaffordable right now, and this deal is going to make things worse,” Tong said. “This unfair and anticompetitive agreement between listing giants Zillow and Redfin will jack up costs for property managers, who will pass those costs on to renters.” He added that this case follows his ongoing lawsuit against RealPage and several major landlords accused of using algorithmic pricing tools to fix rents. “We’re going to continue using every inch of our joint state and federal authority to give families a fair shot at an affordable home.”
Online listing platforms like Zillow are typically free for renters and small landlords, but larger property management companies pay to post their units. Over the past decade, the online rental industry has consolidated heavily. Zillow already owns HotPads and Trulia, while Redfin acquired Rent.com and ApartmentGuide.com. Competitor CoStar controls Apartments.com, ApartmentFinder.com, and ForRent.com. Together, Zillow, Redfin, and CoStar account for roughly 85 percent of the nationwide market. Zillow has bragged to investors about having the largest audience of renters and the “most searched rentals marketplace” and has been open about its plans to expand revenue from that dominance.
In February 2025, Zillow reportedly paid Redfin $100 million to exit the multifamily rental listings market. Under the deal, Redfin’s rental sites like Rent.com will stay active but only as mirrors of Zillow’s listings. Redfin also agreed to stop competing in the multifamily advertising market for up to nine years and to share its customer contacts and business data with Zillow. In effect, Redfin handed Zillow a near monopoly over a massive part of the rental listings ecosystem.
According to the complaint, this arrangement violates federal antitrust laws, including Section 1 of the Sherman Act and Section 7 of the Clayton Act, by substantially reducing competition. Without Redfin as a rival, Zillow will be free to raise prices for property managers, reduce service quality, and indirectly push rents even higher. Tong argues that these actions will further squeeze renters and landlords who rely on affordable advertising platforms to reach tenants.
This lawsuit is the second major antitrust action Tong has filed to address rising rent costs. In August 2024, he joined the U.S. Department of Justice in suing RealPage for allegedly colluding with large landlords to manipulate rental prices using shared algorithms. That case was later expanded in January 2025 to include six of the country’s biggest landlords accused of feeding each other sensitive pricing data to set rents.
Tong’s case against Zillow and Redfin is being led by Assistant Attorney General Julián Quiñones and Deputy Associate Attorney General Nicole Demers, who heads the state’s Antitrust Section. The states and the FTC are seeking to block the agreement, restore competition, and prevent further rent inflation.
“Families deserve a fair chance at an affordable home,” Tong said. “Deals like this put corporate profits above people, and we’re not going to let that stand.”
IF YOU NEED A LAWYER CONTACT US