Redfin recently announced a new partnership with Zillow to syndicate rental listings in multifamily buildings. However, this move was accompanied by the unfortunate news of approximately 450 employee layoffs within Redfin.
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Redfin’s decision to downsize its rentals division and partner with Zillow for rental listings syndication has resulted in the elimination of 450 jobs. This move follows previous layoffs at Redfin’s headquarters, where 46 employees were let go in various roles.
The company made this announcement in a filing with the U.S. Securities and Exchange Commission, revealing details of the partnership with Zillow. As part of the restructuring, Redfin expects to incur costs of $18 million to $21 million by the end of the second quarter.
Meanwhile, Zillow has agreed to pay $100 million for syndication rights of listings in multifamily buildings with over 25 units on Redfin’s rental sites. Additionally, Zillow will pay for leads generated through the syndication for up to nine years.
Zillow’s efforts to expand its multifamily property listings demonstrate its ambition to grow its platform. The real estate portals are engaged in fierce competition to attract individuals in search of rental properties, with Zillow’s rentals segment boasting 1.9 million active listings at the end of 2024.
As part of the deal, Zillow will also pay Redfin for leads from the Redfin Rental Network for at least five years, with the possibility of renewal for additional terms.
This strategic move by Redfin and Zillow underscores the evolving landscape of the real estate market, as portals strive to become the go-to destination for rental listings.
Email Taylor Anderson