CoStar Group announced that it has completed its acquisition of Zonda for $800 million in cash.
The acquisition expands CoStar Group’s presence across the residential real estate ecosystem, extending the company’s proprietary data, analytics, software, and marketplace capabilities into new home construction. The U.S. new-home market represents approximately $400 billion in annual home sales, which is greater than U.S. multifamily rental market, creating a significant addressable market for new-home information, analytics, software and online marketplace solutions.
Through Zonda, CoStar Group gains a deeply embedded platform serving more than 3,000 customers, including many of North America’s largest home builders, developers, suppliers, and lenders. In 2025, Zonda generated approximately $170 million of revenue at an adjusted EBITDA margin of 23%, adding a scaled, profitable, and highly recurring subscription business to CoStar Group’s portfolio. The acquisition is expected to enhance the profitability of the company’s residential segment, support continued expansion of CoStar Group’s consolidated margin profile, and create new opportunities for long-term growth across the broader residential real estate ecosystem.
“Zonda has built an exceptional business around information the home building industry relies on every day,” said Andy Florance, founder and CEO of CoStar Group. “This is a massive market with a sophisticated group of builders, developers, lenders, investors, and suppliers that need purpose-built information, analytics, and marketing solutions. With the acquisition now complete, we have the opportunity to bring together Zonda’s proprietary new construction data, software, and builder relationships with CoStar Group’s technology, analytics, and marketplace capabilities. We believe that combination can deliver significantly more value to builders, lenders, and other industry participants, accelerate innovation across the home building ecosystem, and create a compelling new growth platform for CoStar Group.”
Zonda’s platform spans the new-home development lifecycle, from land acquisition and development planning through construction forecasting, community marketing, operational workflow management and home sales. At its core is a proprietary, lot-level database covering new home communities, land development activity, construction status, home sales, and builder operations. The information is used by customers to support decisions involving underwriting, land strategy, capital allocation, development planning, forecasting, and sales operations.
The acquisition also brings NewHomeSource.com and Livabl into CoStar Group’s portfolio of online marketplaces. The platforms focus exclusively on new construction and provide consumers with detailed information on new homes and communities, including floor plans, pricing, incentives, virtual tours, and community information. Home builders contribute listings directly to the platforms, creating a highly targeted marketplace connecting builders with consumers actively considering newly constructed homes.
The focus on new construction is important. Home builders have distinct data, technology, and marketing needs and want solutions designed around their business and their customers, not marketplace models tied to commissions generated elsewhere in the residential transaction. NewHomeSource.com and Livabl provide purpose-built environments where builders can market their communities directly to consumers, supported by Zonda’s deep industry relationships, data, and expertise.
“New residential construction is a massive market, yet the information and digital marketplace opportunities within it remain significantly underdeveloped,” Florance said. “CoStar Group has spent four decades assembling proprietary real estate information, turning that information into valuable analytics and creating online marketplaces that make property easier to discover and transact around. Zonda gives us an outstanding foundation to bring that model more deeply into the new home market.”
The combination is expected to create opportunities across CoStar Group’s commercial, residential, multifamily, lending, and analytics businesses. Zonda’s builder relationships and market intelligence can complement CoStar Group’s existing property information, while its new-home marketplaces add another important category to the company’s growing residential marketplace portfolio. The acquisition also creates a substantial opportunity to introduce Zonda’s information, analytics, and online marketplaces to customers across CoStar Group and to bring CoStar Group’s data, analytics, and online marketplace solutions to Zonda’s customers.
“For decades, Zonda has earned the trust of the home building industry by providing the data, intelligence, and solutions our customers rely on every day. By joining CoStar Group, we gain the scale, technology, and resources to accelerate innovation, deepen our industry insights, and deliver even greater value to builders, developers, and housing professionals. Together, we are creating a stronger platform that we expect will accelerate growth, expand innovation, and create new opportunities across the housing ecosystem,” said Jeff Meyers, president of Zonda.
CoStar Group also sees opportunities to combine Zonda’s Envision visualization and digital merchandising capabilities with Matterport’s spatial technology. Together, the technologies can create richer digital experiences for builders and homebuyers and improve the way new construction is marketed, visualized, and discovered online.
The closing comes as CoStar Group continues to expand its residential real estate businesses while increasing profitability across the company. In the second quarter of 2026, CoStar Group generated $925 million in revenue, an increase of 18% year over year, while adjusted EBITDA more than doubled to $184 million. Residential revenue increased 33% year over year to $444 million, and the residential segment generated positive adjusted EBITDA for the quarter. Please see CoStar Group’s earnings release for the quarter ended June 30, for the non-GAAP reconciliations.
CoStar Group announced its agreement to acquire Zonda on May 29. The transaction has now satisfied the required regulatory approvals and customary closing conditions.
BofA Securities served as financial advisor and Latham & Watkins LLP served as legal advisor to CoStar Group.
