Expanding Horizons: Zillow’s Growth in Mortgage and Rentals
Zillow’s shift in focus from iBuying to its “Super App” strategy has proven successful, with significant growth in its mortgage and rental sectors during Q2 2025. Revenue from Zillow’s mortgage operation surged by 41% annually to $48 million, while the rental segment saw a 36% year-over-year revenue increase to $159 million. The residential for-sale segment also experienced healthy growth, with a 9% annual revenue increase to $434 million.
Overall, Zillow recorded quarterly revenue of $655 million, marking a 15% increase compared to the same period last year. Furthermore, the company reported quarterly net income of $2 million, a significant improvement from a net loss of $17 million in Q2 2024. In the first half of 2025, Zillow achieved a total net income of $10 million, a stark contrast to its $40 million net loss in the first half of 2024.
Zillow’s Chief Revenue Officer, Wacksman, attributes much of this success to the company’s effective execution of its for-sale strategy. He emphasized that Zillow’s for-sale revenue growth continues to outpace industry norms, indicating a positive reception from consumers and real estate professionals.
Seizing Opportunities: Zillow’s Strategic Expansion
Wacksman highlighted Zillow’s progress in enhanced markets, where the company aims to connect high-intent consumers with Zillow partner agents. In Q2, 27% of these connections were facilitated through the enhanced market experience, with a long-term goal of reaching at least 75% of connections through this channel.
Additionally, Zillow’s offerings such as Follow Up Boss and Zillow Home Loans have seen strong adoption rates in these enhanced markets. Notably, Zillow Home Loans recorded double-digit adoption rates, prompting the company to expand its product suite and enhance its FHA loan offerings in select geographies.
Zillow’s rental segment has also experienced rapid growth, boasting 2.4 million active rental listings in Q2. Multifamily properties have been particularly successful, with multifamily revenue up by 56% year over year and property count increasing by 45% to 64,000 by the end of Q2.
With 36 million average monthly rental unique visitors in Q2 2025, Zillow has secured the top position in rentals traffic. Wacksman expressed confidence in the continued acceleration of quarterly year-over-year rentals revenue growth, paving the way for a billion-dollar-plus revenue opportunity in the near future.
While Zillow’s recent success was a focal point of the earnings call, company leaders also discussed the implementation of Zillow’s listing access standards policy. This policy, which requires listings to be placed in the MLS within 24 hours of public marketing, aims to promote transparency and equal access for all consumers.
Looking ahead, Zillow remains committed to growth despite challenges in the macroeconomic environment. Executives acknowledge the ongoing housing market complexities but are optimistic about Zillow’s ability to thrive through strategic product development and a consumer-centric approach.