CoStar Study Examines Zillow's Role in Shaping Real Estate and Mortgage Markets – Monday, January 26, 2026

A CoStar-backed study has analyzed Zillow’s influence on the real estate and mortgage industries, offering a data-driven perspective on the competitive dynamics and market positioning of this key player. The findings shed light on how Zillow’s digital innovations are reshaping these sectors and the broader implications for industry stakeholders.

Who should care: city planners, smart city program managers, real estate technology leaders, mobility operations teams, and urban infrastructure decision-makers.

What happened?

The recent CoStar-supported study provides an in-depth examination of Zillow’s impact on the real estate and mortgage markets amid a rapidly evolving digital landscape. It highlights how Zillow’s suite of digital platforms and tools has fundamentally altered consumer behavior and industry practices, influencing processes from property listings to mortgage applications. The study reveals Zillow’s pivotal role in accelerating digital transformation within the real estate sector, driving innovation and shifting competitive strategies among market participants. Notably, it underscores the intensifying rivalry between CoStar and Zillow, two dominant forces in real estate information and analytics, each vying for market leadership. The analysis also raises important questions about Zillow’s strategic direction moving forward, particularly how it plans to sustain or grow its market share in the face of mounting competition and changing consumer expectations. By quantifying Zillow’s influence, the study offers valuable insights into the evolving interplay between technology, consumer preferences, and industry dynamics.

Why now?

This study’s timing is critical as it coincides with a period of accelerated digital adoption and heightened competition in real estate. Over the past 18 months, consumer reliance on online tools for real estate transactions has surged, intensifying the battle between CoStar and Zillow for dominance in the digital marketplace. As the industry undergoes rapid transformation, stakeholders are eager to understand these shifts and adapt their strategies accordingly. The study arrives at a moment when clear, data-driven insights are essential for navigating the complexities of this changing environment, making it a timely resource for decision-makers across the sector.

So what?

The study’s findings carry significant implications for the real estate and mortgage industries. Strategically, they emphasize the imperative for companies to embrace digital transformation to remain relevant and competitive. Operationally, the insights highlight the growing importance of harnessing data and analytics to better understand consumer behavior and optimize business models. As Zillow continues to influence market standards and expectations, industry players must reassess their competitive positioning and innovate accordingly. For stakeholders across the ecosystem, from city planners to technology leaders, the study underscores the need to integrate digital real estate data and analytics into their decision-making frameworks to drive smarter, more responsive strategies.

What this means for you:

• For city planners: Integrate digital real estate data into urban development initiatives to improve planning accuracy and responsiveness.
• For smart city program managers: Explore partnerships with real estate platforms to enhance city services and infrastructure planning through data-driven insights.
• For real estate technology leaders: Prioritize the development of innovative, data-centric tools to compete effectively in an increasingly digital marketplace.

Quick Hits

• Impact / Risk: The study highlights the expanding influence of digital platforms in real estate, presenting both opportunities and challenges for traditional players.
• Operational Implication: Companies must accelerate digital transformation and invest in data analytics to maintain competitiveness.
• Action This Week: Review your digital strategy, evaluate competitive positioning, and consider boosting data analytics capabilities to enhance market agility.