Zillow Listings for Chicago Area Vanish Amid Data Removal by Local Entity
Chicago MLS Blocks Zillow Data Access Over Listing Dispute
In a move that could significantly impact the city's residential real estate market, the organization that manages residential real estate listings in Chicago and its surrounding suburbs has suspended data access for Zillow Group Inc. Midwest Real Estate Data LLC, the local multiple listing service operator, has blocked Zillow from data on 43,000 properties due to the website's exclusion of a handful of homes previously offered in private listings.
The dispute stems from a federal lawsuit filed by Zillow last week, claiming that MRED and Compass Inc. colluded to hide some homes from buyers and harmed competition in the residential real estate market. MRED Chief Executive Officer Rebecca Jensen has stated that all listings should be shown, as required by its data licensing agreement.
| Company | Number of Listings Excluded |
|---|---|
| Zillow | 9 |
| Compass | 0 (as per the current agreement) |
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The move follows a long-standing dispute between Zillow and Compass over listing policies. Compass has argued that Zillow is using "anticompetitive tactics" with its policy to restrict certain listings. In a statement, Compass said that Chicago has long been a model for an open, competitive marketplace that empowers homeowners while ensuring broad access to housing information.
As of 12:30 pm New York time, MRED data was still being used on Zillow's app, though the Seattle-based company has started removing the listings. Zillow has claimed that the decision by MRED and Compass is harming homebuyers and sellers in the Chicago area, who now have far worse access to the housing market than they did yesterday.
At the core of the conflict is Compass' push to encourage sellers to first market their homes to agents at the firm. Zillow has argued that there should be transparency and has instituted a policy saying that it will block certain listings that are publicly marketed for more than 24 hours before being posted to a local multiple listing service.
Investor Takeaway
Investors should be cautious of potential disruptions in the residential real estate market due to the feud between Zillow and Compass.
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