Zillow’s Revenue Is Up, But the Housing Market Isn’t Helping

Zillow’s latest earnings report is like a real estate listing with great photos but a shaky foundation. The company posted solid revenue growth for the fourth quarter, but when you zoom out, the picture gets a little less Instagram-worthy.

The Good News: Zillow’s Making More Money

Let’s start with the shiny part: Zillow’s revenue jumped 17% to $554 million, beating Wall Street’s expectations of $547 million. They also managed to trim their quarterly loss from $73 million down to $52 million. Progress? Definitely. A reason to pop champagne? Maybe hold off on that.

But here’s the kicker: analysts were expecting an even smaller loss—around $42 million—so while Zillow’s doing better, it’s still not hitting the sweet spot investors were hoping for.

The Bad News: The Housing Market Is a Buzzkill

Zillow’s strong revenue growth comes with a giant asterisk: the housing market is struggling. Mortgage rates are hovering around 7%, making potential buyers think twice before signing on the dotted line. It’s like trying to sell ice cream in a snowstorm—people want it, but the timing’s just not great.

And it’s not just rates. Political uncertainties like President Trump’s proposed tariffs and plans to deport millions of undocumented immigrants are adding to the economic jitters. Throw in the Federal Reserve’s “we’re in no rush to cut rates” attitude, and you’ve got a recipe for a housing slowdown.

“2025 is going to be more of the same for the housing market,” said Zillow’s CEO Jeremy Wacksman, basically confirming what every frustrated homebuyer and seller already knows.

Zillow’s Game Plan: Diversify and Conquer

Despite the rough market, Zillow isn’t just sitting around waiting for interest rates to drop. The company’s shifting gears, focusing on areas where it can still grow—like the rental market. In fact, Zillow just became the exclusive provider of multifamily rental listings on Redfin and its partner sites. Starting this spring, Zillow will syndicate these listings, tapping into what it estimates is a $25 billion market.

Rentals are already paying off. Revenue from rentals grew 25% last quarter, hitting $116 million. Not too shabby for a company traditionally tied to home sales.

What’s Next?

Looking ahead, Zillow expects first-quarter revenue between $575 million and $590 million, though analysts were hoping for about $599 million. For the full year, the company is predicting profits with low to mid-teens revenue growth, which lines up with Wall Street’s estimates.

But the big question remains: can Zillow keep growing if the housing market stays stuck in the mud? Their bet is that focusing on rentals, tech partnerships, and helping builders get homes to market faster will keep them ahead of the curve.

The Bottom Line

Zillow’s proving it can still pull in revenue even when the housing market isn’t playing nice. But like any good real estate deal, the devil’s in the details. The company’s making smart moves, but with mortgage rates high and economic uncertainties looming, the road ahead could be as bumpy as a fixer-upper’s foundation.





​