Edit: I have become aware that Zillow has already launched paid listings in several markets. I guess it’s going well.
2020 has been a strangely good year for companies in the real estate business with demand for homes in many cities jumping. Record low mortgage rates and flexible remote work policies have led to many buyers but few sellers. In June, homes were sold at their fastest pace since 2018. Both Zillow and Redfin have resumed buying homes through their iBuyer ventures. Redfin went from laying people off to hiring aggressively.
Now, Zillow is further monetizing their rental marketplace by making landlords in certain markets pay $40/mo to list vacancies.
If they don’t completely drive away landlords with this move, it looks like a smart way to improve margins at a time when landlords are struggling to find tenants and prospective shoppers are doing almost all of their shopping online. While it’s only select markets for now, if it’s successful enough I’m sure they’ll expand the policy to other markets.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.