Zillow Group, Inc. Class A (ZG) Stock Analysis

Zillow Group’s primary competitive advantage is its dominant consumer brand and audience reach. The “Zillow” name is more frequently searched than “real estate” in the U.S., and the company’s platforms attract over 227 million average monthly unique users—more than double the next largest competitor. Roughly 80% of this traffic is direct, reflecting strong brand loyalty and reducing reliance on paid marketing.

This audience scale creates a network effect: agents and property managers are incentivized to list on Zillow to access the largest pool of potential buyers and renters. In rentals, Zillow lists over 2 million properties and has become the preferred platform for 37 million renters monthly, outpacing Redfin and Homes.com.

Zillow’s technology stack is another differentiator. The company has invested over $4 billion in proprietary tools such as Zestimate (automated home valuation), 3D Home tours, and the Showcase listing product. These features drive user engagement and provide agents with higher-quality leads. The integration of software like Follow Up Boss (CRM) and ShowingTime (tour scheduling) further embeds Zillow in agent workflows.

Relative to Redfin and Homes.com, Zillow’s market share in both audience and transaction volume is materially higher. While Redfin and Rocket have moved toward integrated transaction models, Zillow’s “super app” strategy is further along, with 35% of connections now routed through its enhanced, end-to-end digital experience.

Zillow’s scale, brand, and technology investments create high switching costs for both consumers and industry professionals, underpinning its durable competitive edge.