CoStar is expanding its reach in residential real estate with an $800 million cash acquisition of Zonda, a firm specializing in homebuilding data and online marketplaces for new homes. The deal, announced May 29, is expected to close in the second half of 2026 after regulatory approval. CoStar CEO Andy Florance called the move a chance to build on Zonda’s “deep relationships across the homebuilding industry” and its “one of the most valuable proprietary datasets in new home real estate.”
Access to a Growing Network
Zonda serves more than 3,000 customers, including builders, developers, lenders, and suppliers. Its platforms, NewHomeSource and Livabl, connect homebuyers directly with inventory, floor plans, and virtual tours. The acquisition adds Zonda’s data and analytics tools, which cover everything from land acquisition to sales forecasting, to CoStar’s existing commercial and residential real estate offerings.
The company said the deal strengthens its position in the $1 trillion U.S. new home construction market. Zonda generates most of its revenue through subscriptions, with a net customer retention rate of 104%. That metric, CoStar noted, reflects strong loyalty among its clients, many of whom rely on Zonda’s tools for decision-making.
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“Zonda has built an extraordinary business,” Florance said in a statement. “This acquisition creates opportunities to cross-sell products across CoStar’s commercial, residential, multifamily, lending, and analytics businesses.”
Some industry observers have questioned whether CoStar’s focus on data and marketplaces will clash with its traditional real estate listings business. But CoStar emphasized that the integration would prioritize expanding access to tools for homebuyers and builders rather than displacing existing services.
Technology and Marketplace Integration
Alongside Zonda’s data products, the acquisition brings two online marketplaces focused exclusively on newly built homes. Builders use these platforms to showcase inventory, pricing, and incentives to buyers in the U.S. and Canada. CoStar said it plans to integrate Zonda’s Envision visualization software with Matterport’s spatial-data platform, acquired in 2025. The goal is to improve how new homes are marketed online.
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“The homebuilding industry needs better tools to connect buyers and sellers,” said a real estate analyst who requested anonymity. “CoStar’s move could help standardize how data is used, but it’s unclear how much of that will benefit smaller builders.”
CoStar has not disclosed how much of Zonda’s current revenue will be attributed to its marketplaces versus its data and analytics services. The company said it will maintain Zonda’s operations as a standalone unit for now, though integration plans are expected to accelerate after the deal closes.
The acquisition follows CoStar’s expansion into residential search through Homes.com and its push to diversify beyond commercial real estate. Florance declined to comment on whether the company will pursue further acquisitions in the homebuilding data sector, but CoStar’s filings show it has been increasing investment in AI-driven analytics tools.
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Regulatory approval remains a hurdle. The Federal Trade Commission has been scrutinizing large real estate data deals in recent years, and CoStar will need to demonstrate that the acquisition does not harm competition. Florance said the company is working with regulators to address any concerns.
For now, the deal positions CoStar as a major player in a sector that has long been fragmented. With Zonda’s tools and CoStar’s reach, the combined entity could influence how new homes are developed, marketed, and sold. But the success of the integration will depend on how well the two companies align their technologies and customer needs.
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