Pull to refresh
Logo
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

August 21st, 2026: Zonda deal closes

Overview

Updated Aug 22

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.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

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.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

Sign up to generate historical perspectives on this story.

People Involved

Organizations Involved

Timeline

February 2025 August 2026

4 events Latest: August 21st, 2026 · 3 weeks ago
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.

Scenarios

1

CoStar's residential revenue keeps climbing past $1.8 billion

Likely Resolves by Mar 1, 2027

Discussed by: CoStar guidance; HousingWire and Inman coverage

Zonda adds about $170 million in annual revenue on top of Homes.com's growth. If sales momentum holds, CoStar's residential segment clears $1.8 billion for full-year 2026, up from $1.46 billion in 2025. The company reports segment revenue each quarter, so the figure is easy to check.

2

CoStar launches Zonda-powered new-home listings on Homes.com

Possible Resolves by Q2 2027

Discussed by: CoStar product statements; real-estate trade press

CoStar has said it wants to blend Zonda's new-home inventory and Envision visualization with Homes.com and Matterport imaging. A public launch of integrated new-construction listings would show the deal producing a consumer product, not just a data buy. It counts only if CoStar announces the feature is live.

3

CoStar's residential unit reaches adjusted profitability

Uncertain Resolves by End of 2030

Discussed by: CoStar management, which has targeted Homes.com profitability around 2030

The residential arm lost $230 million on an adjusted basis in 2025, an improvement from a $361 million loss the year before. CoStar has told investors it expects the unit to turn profitable near the end of the decade. Hitting an adjusted-EBITDA profit would validate years of spending on Homes.com, Matterport, and Zonda.

4

CoStar retreats from its residential bet

Unlikely Resolves by End of 2028

Discussed by: Activist investors and skeptics cited by The Real Deal

CoStar's stock fell sharply through 2025 and 2026 as residential losses piled up, and one activist fund pushed for a board fight before dropping it. If losses persist, CoStar could write down or sell parts of its residential business, including Zonda. That would mark a reversal of Florance's strategy.

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

(7)