A dispute over so-called “hidden” home listings escalated as Midwest Real Estate Data (MRED) cut off Zillow Group Inc.’s access to its database, causing tens of thousands of Chicago-area listings to vanish from the portal and sending Zillow’s stock down 2.4 percent for the week.
"Chicagoland home buyers and sellers today have far worse access to the housing market than they had yesterday, because their local MLS decided one mega-brokerage’s profits mattered more than their ability to achieve the American Dream," a Zillow spokesperson said in a statement to Ars Technica.
The move by MRED, which supplies data to the Chicago area, saw the number of homes for sale on Zillow in the city plummet from nearly 5,000 to around 1,700 overnight, according to the Chicago Sun-Times. The core of the dispute is Zillow's policy that penalizes "private listings"—homes marketed to a select group of buyers before being made public. Zillow alleges this practice, championed by the brokerage Compass Inc., harms consumers by reducing transparency.
The data cutoff is the latest salvo in a legal battle that began when Zillow filed a federal antitrust lawsuit against MRED and Compass. Zillow claims the two conspired to create "barriers to information" by hiding listings in a Private Listing Network (PLN). MRED argues Zillow breached its contract by refusing to display nine such listings and that any harm to Zillow is "self-inflicted."
The conflict leaves real estate agents and their clients in a difficult position, forcing them to navigate a fractured listing landscape. While some brokerages like Berkshire Hathaway HomeServices and eXp Realty have established direct data feeds to Zillow, ensuring their listings remain visible, others have not. Compass CEO Robert Reffkin stated his firm would not provide a direct feed, citing legal risks and the need to protect client data.
"If I’m selling my home in Chicagoland, I want it to be as visible and accessible to as many potential buyers as possible," said Nick Aufenkamp, a Washington-based broker, in an email. "For a brokerage/agent to prioritize lead capture over market exposure seems to me to be a violation of fiduciary responsibility."
The feud highlights the growing tension between new real estate technology platforms and traditional industry players. Zillow, which relies on comprehensive listing data for its consumer appeal, warns in its SEC filings that losing access to MLS feeds could severely harm its business.
MRED and Compass counter that the issue is about choice. "This is about whether homeowners have a choice in how they market their homes, or whether Zillow can set a one-size-fits-all policy for the industry," a Compass spokesperson said.
Zillow has asked a federal court to issue a preliminary injunction to restore the data feed, with a status meeting scheduled for May 26. The outcome could have significant implications for how real estate data is shared and controlled in the digital age, affecting the business models of brokerages, the tools available to agents, and the transparency of the market for buyers and sellers.
This article is for informational purposes only and does not constitute investment advice.
