CoStar Acquires Zonda for $800M, Expanding Into New-Home Data

Zonda’s New-Home Data Draws a Giant

According to the Commercial Observer, CoStar Group has closed its $800M cash acquisition of Zonda. Zonda serves more than 3,000 builders, lenders, developers, and suppliers with proprietary construction and development data. The deal gives CoStar direct exposure to the $400B annual US new-home sales market.

The acquisition, first announced in May, expands CoStar into construction analytics, homebuilder software, and new-home marketplaces. Previously, these segments sat largely outside CoStar’s core commercial and multifamily platforms.

The Details

Washington, D.C.-based Zonda generated $170M in revenue during 2025. The deal adds Zonda’s lot-level community and construction tracking tools to CoStar’s growing residential portfolio. CoStar also gains the NewHomeSource.com and Livabl marketplaces, expanding its consumer-facing reach.

The acquisition follows CoStar’s strong Q2 2026 results. Quarterly revenue reached $925M, rising 18% from the prior year. Residential revenue jumped 33% to $444M. CEO Andy Florance highlighted opportunities to combine Zonda’s builder network with CoStar’s technology, analytics, and marketplace scale.

CoStar’s Residential Ambitions Accelerate

Zonda’s integration marks another major step in CoStar’s long-term residential expansion. The company built its reputation through its dominant position in commercial property data. However, CoStar has steadily pushed deeper into residential markets during the past five years.

Its expansion includes Apartments.com and its investment in 3D property visualization through Matterport. The $800M Zonda acquisition further extends that strategy into new-home data, builder analytics, and digital marketplaces. Zonda now takes CoStar deeper into the new-home market with data, analytics, software, and digital marketplaces.. Meanwhile, other CRE technology companies are also diversifying beyond office and traditional property sectors.

Why It Matters

The deal highlights the growing importance of data and marketplace scale across commercial and residential real estate. New-construction data historically represented a significant gap in CoStar’s information portfolio. Zonda now fills that gap with detailed development data and established builder relationships.

The timing also matters as US residential demand continues evolving. Despite 2025 market headwinds, new-home sales represent a $400B opportunity, according to CoStar. Builders increasingly rely on digital marketing and advanced analytics to compete. CoStar’s residential revenue growth of 33% in Q2 reinforces that opportunity.

Zonda’s Envision platform could also strengthen CoStar’s consumer-facing digital experiences. Pairing Envision with Matterport’s spatial technology could create richer home-shopping tools. Ultimately, the acquisition pushes CoStar toward integrating data, software, visualization, and marketplaces within one residential ecosystem.

What’s Next

With Zonda’s teams and systems under its umbrella, CoStar now turns its attention toward integration. The company plans to combine Zonda’s data and builder relationships with its existing analytics and technology infrastructure.

Platform integration could become a major focus over the coming months. In particular, CoStar could connect Zonda’s Envision platform with Matterport’s visualization technology. That combination could create more immersive digital home-shopping experiences.

CoStar has also signaled continued investment in residential products and technology. The industry will watch whether these investments strengthen its position across new-home sales and broader real estate technology.