CoStar 2026: $800M Zonda Deal Targets New-Home Data Market

CoStar Group will pay $800 million in cash for Zonda, snapping up NewHomeSource, Livabl and a 3,000-customer homebuilder data franchise. The deal lands as Andy Florance fends off activists, spars with Zillow over Matterport tours, and squares up against an Opendoor turnaround under new CEO Kaz Nejatian.

Published: June 6, 2026 By James Park, AI & Emerging Tech Reporter Category: PropTech

James covers AI, agentic AI systems, gaming innovation, smart farming, telecommunications, and AI in film production. Technology analyst focused on startup ecosystems.

CoStar 2026: $800M Zonda Deal Targets New-Home Data Market

LONDON, Saturday, June 6, 2026 — CoStar Group will pay $800 million in cash for Zonda, pulling the homebuilding industry's dominant data platform — and the NewHomeSource and Livabl marketplaces — inside its residential portfolio. The definitive agreement, disclosed in an 8-K on May 29, runs through CoStar Realty Information and acquires Bora Holdings Group from MidOcean Partners. CoStar said the deal is expected to close in the second half of 2026 and to be accretive to adjusted EPS in the first full year of ownership. Founder and CEO Andy Florance framed it as a fourth pillar alongside commercial, multifamily and residential search.

Key Takeaways

CoStar Group entered into a definitive agreement to acquire Zonda for $800 million in cash on May 29, 2026.
Zonda serves more than 3,000 customers across the homebuilding ecosystem with mostly subscription revenue and 104% net customer retention.
The deal brings NewHomeSource and Livabl, two leading online new home marketplaces in the U.S. and Canada, into CoStar's family.
CoStar said the acquisition strengthens its position in the nearly $1 trillion U.S. new home construction market.
The seller is private equity firm MidOcean Partners; the deal is expected to close in the second half of 2026.

Context & Analysis

The Zonda purchase is Florance's biggest residential bet since the Homes.com build-out. CoStar's last attempted $588M acquisition of RentPath was blocked by the FTC in 2020, following a $450M deal for hotel data company STR in late 2019, and earlier acquisitions of LoopNet in 2012 and Apartments.com in 2014. Zonda itself has been an active consolidator. In early 2024 it purchased Builders Digital Experience — owner of NewHomeSource.com and design platform Envision — and previously bought self-guided tour company UTour in 2023 and digital home mapping firm Alpha Vision in 2022.

The timing is pointed. In April hedge fund Third Point sold its entire CoStar stake and dropped a board fight critical of CEO Andy Florance's heavy Homes.com investment, with CoStar saying that investment cycle had ended. Buying Zonda hands Florance a profitable, subscription-led data asset to point activists toward. CoStar's websites attracted 131 million average monthly unique visitors in the first quarter of 2026.

Company	Position	Recent Move	Source
CoStar Group	CRE data & marketplaces	$800M cash deal for Zonda announced May 29, 2026	CoStar press release
Zonda (Bora Inc.)	New-home data & marketplaces	Sold by MidOcean Partners; brings NewHomeSource, Livabl	HousingWire
Zillow Group	Residential super-app	Still locked out of Matterport 3D tours over CoStar terms dispute	HousingWire
Opendoor	iBuyer reset	"Opendoor 2.0" targets adjusted net income profitability by end-2026	TradingView/Zacks

Competitive Landscape

The U.S. residential PropTech stack is realigning around three poles: data depth, marketplace traffic and transactional rails. CoStar is buying its way to depth. Zonda's proprietary lot-level database covering new home communities, land development, construction status and home sales is deeply embedded in builder underwriting, land strategy and capital allocation workflows. That puts CoStar inside the lender and developer stack in a way Zillow's consumer-first super-app does not. The implementation approach emphasizes meeting GDPR, SOC 2, and ISO 27001 compliance requirements, The approach aligns with frameworks recommended by leading consultancies. In recent investor communications, leadership confirmed that market conditions support continued investment.

Zillow, meanwhile, is fighting on two fronts. More than six months after Zillow first pulled Matterport's 3D tours in October 2025 over Matterport's updated terms, the two companies are still debating whether Zillow can display the tours; Matterport says CoStar will not sue. Zillow says CoStar refused an executed promise not to sue if Matterport tours appear on Zillow. Opendoor is running a separate playbook. Under its Opendoor 2.0 framework, the company reiterated in Q1 2026 it expects adjusted EBITDA profitability on a 12-month go-forward basis from Q2 and adjusted net income profitability by year-end 2026.

For deeper context, see our PropTech analysis: "PropTech Market Trends: Funding, Digital Twins, and the 2025 Outlook".

Company	Category	Key Development	Impact
CoStar Group	Data + marketplaces	Adds Zonda lot-level new-home dataset	Cross-sell across CRE, multifamily, lending
Zillow	Consumer super-app	Matterport tour standoff continues	Listings media gap vs. Homes.com, Realtor.com
Opendoor	iBuyer / asset-light	Opendoor 2.0 under CEO Kaz Nejatian	Path to adj. net income profitability by end-2026
MidOcean Partners	Private equity seller	Exiting Bora Inc./Zonda at $800M	PE rotation out of PropTech data

What It Means

For Enterprise Buyers

Builders, lenders and land developers should expect Zonda subscriptions to be repriced and bundled into CoStar's broader analytics suite over the next 12–18 months. CoStar has flagged cross-sell opportunities across its commercial, residential, multifamily, lending and analytics businesses. Procurement teams with overlapping CoStar and Zonda contracts should plan renewal calendars accordingly.

For Investors

The deal swaps balance-sheet cash for recurring revenue with strong retention. The acquisition represents roughly 6% of CoStar's $13.2 billion market capitalization, with the company maintaining more cash than debt and a current ratio of 2.2. CoStar expects the acquisition to be accretive to adjusted EPS in the first full year of ownership. The market read will hinge on integration speed and on whether antitrust review goes faster than the 2020 RentPath block.

Additional coverage: Microsoft Advances PropTech Cloud Integration Strategy for 2026

Forward Outlook

Watch three milestones. First, antitrust clearance — the deal is expected to close in the second half of 2026 subject to customary closing conditions and required regulatory approvals. Second, the Zillow-Matterport-CoStar triangle: any signed no-sue pledge would unlock tour media flow, and Florance now has more reason to negotiate. Third, Opendoor's Q2 print, which will test whether Opendoor's strongest quarterly contract volume since 2022 and the drop in 120-day-plus inventory to 10% from 51% two quarters earlier translate into the promised profitability arc.

Additional coverage: PropTech's New Playbook: AI Leasing, Carbon Twins, and Drone Audits Accelerate in Q4

For deeper context, see our related analysis: "PropTech Market Size: Growth Outlook, Segments, and Funding Trends".

Sources include company disclosures, regulatory filings, analyst reports, and industry briefings.

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About the Author

James Park

AI & Emerging Tech Reporter

James covers AI, agentic AI systems, gaming innovation, smart farming, telecommunications, and AI in film production. Technology analyst focused on startup ecosystems.

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Frequently Asked Questions

How much is CoStar paying for Zonda and when was the deal announced?

CoStar Group announced on May 29, 2026 that it had entered into a definitive agreement to acquire Zonda for $800 million in cash, with the transaction expected to close in the second half of 2026 subject to customary closing conditions and regulatory approvals.

Who is selling Zonda?

Private equity firm MidOcean Partners is the seller. The transaction is structured through a Stock Purchase Agreement with Bora Holdings Group, the parent of Bora, Inc. (Zonda), as disclosed in CoStar's 8-K filing.

What assets does CoStar gain in the deal?

CoStar gains Zonda's lot-level new-home construction database, homebuilder software, and the NewHomeSource and Livabl online marketplaces operating in the United States and Canada. Zonda serves more than 3,000 customers across the homebuilding ecosystem.

How does this affect the Zillow–CoStar Matterport dispute?

It does not resolve it directly. Zillow continues to refuse to host Matterport 3D tours absent a binding no-sue pledge from CoStar, which Matterport says it will provide and Zillow says it has not received in executed form.

Why is this a meaningful deal for enterprise PropTech buyers?

Zonda's data is embedded in builder, lender and developer workflows for underwriting, land strategy and capital allocation. Combining it with CoStar's commercial, residential, multifamily and analytics assets opens cross-sell and bundling that will reshape procurement decisions through 2027.