- CoStar Group agreed to buy Zonda for $800M in cash, expanding into residential new home data and marketing.
- Zonda brings over 3,000 homebuilding clients and leading B2B data, plus consumer platforms NewHomeSource and Livabl.
- This move gives CoStar a major entry into the $1T US new residential construction market, strengthening cross-sell within its portfolio.
CoStar Enters $1 Trillion New Home Data Market
CoStar Group, the major CRE data and marketplaces player, is buying Zonda, the top platform for new home construction intelligence and listings, in an $800M all-cash deal, as per BusinessWire. Announced this week, the acquisition brings Zonda’s builder-focused analytics and leading consumer platforms like NewHomeSource directly into CoStar’s ecosystem. The deal is targeted to close in the second half of 2026, pending regulatory approval.
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Integration Expands CoStar’s Residential Reach
Zonda serves more than 3,000 clients across North America’s homebuilding industry. Its customers include major builders, developers, suppliers, and lenders. Its proprietary lot-level database tracks projects from land acquisition through construction. It also provides forecasting and community-level sales analytics. The business generates recurring subscription revenue and maintains 104% net customer retention.
Meanwhile, Zonda operates builder-focused marketplaces in both the US and Canada. NewHomeSource and Livabl connect buyers with new construction inventory directly from builders. These platforms also offer targeted marketing and merchandising tools that resale-focused sites often lack.
Cross-Pollination With Broader CRE Platforms
With this acquisition, CoStar positions itself to cross-sell new products and analytics across commercial, multifamily, lending, and residential portals. Notably, Zonda’s platforms will leverage CoStar’s core expertise, including workflow integration and visualization technology. The deal also pairs Zonda’s Envision digital merchandising with Matterport’s spatial data for richer virtual home marketing, bridging the gap between builder data and consumer experience.
Why It Matters
The annual value of new US residential construction nears $1T, per Census Bureau data—substantially greater than institutional multifamily or office rent rolls. Capturing builder-driven data and transaction flow gives CoStar direct entry to a massive vertical traditionally underserved by commercial data providers. The move also comes as office vacancy forecasts are showing signs of stabilization, giving investors more confidence in long-term property fundamentals. Zonda’s builder and developer ties could funnel new business across CoStar’s entire data-driven suite, enhancing insights for both CRE and resi investors.
What’s Next
Expect the deal to close in the second half of 2026. Eyes are on integration: CoStar aims to deliver accretive adjusted EPS in year one, combining digital listing experiences and spatial technologies. Watch for how builder relationships drive cross-sell potential, and whether CoStar’s broader platform can deliver the workflow advantages it touts for homebuilders, establishing the company as a competitive force in both CRE and residential data for developers and investors alike.
