Zillow conducted a study using data from Urbanicity and the Census’s 2019-2023 American Community Study to determine that areas with a majority white population tend to have more private listings compared to majority non-white areas.
Race, not price, influence private listings, says Zillow
In majority-white areas, 8.9% of homes listed in the upper price tiers were private listings, while in majority-non-white areas, only 5.1% were private listings. Zillow argues that racial composition, rather than price, plays a significant role in the prevalence of private listings. The report warns that using private listing networks can reinforce segregation patterns, especially in historically racially segregated markets.
Zillow emphasizes that private listing systems could unintentionally perpetuate racial segregation and limit access to housing opportunities, potentially amplifying existing inequities. Orphe Divounguy, a senior economist at Zillow, expressed concerns about how private marketing strategies could deepen segregation and restrict housing opportunities, moving away from a fair and open housing market.
While some brokerages and agents use private listings to test pricing strategies and speed up sales, Zillow cautions against overreliance on exclusive access as it could diminish fairness and transparency in the housing market.
Zillow currently in court
Zillow is currently facing legal challenges over its listing access standards policy, which prohibits listings that have been publicly marketed for more than one business day prior to appearing on Zillow. Compass filed a lawsuit against Zillow, alleging that the policy hinders competition and harms their business.
Homebuyers deserve to see all homes listed
Michael Chavarria of the HOPE Fair Housing Center emphasized the importance of giving homebuyers the right to access all available listings in an area. A study by Elizabeth Korver-Glenn revealed that private listings contribute to racial segregation in housing markets, disproportionately excluding Asian, Black, and Latino consumers from opportunities in majority-white areas.
Korver-Glenn urged legislators to target practices like private listings to combat racial segregation in housing markets effectively.
Despite attempts to reach out, MRED did not provide a comment on the matter. The ongoing dispute between Zillow and MRED highlights the challenges of enforcing listing access standards and addressing issues of fairness and transparency in the housing market.