Zillow Selling Off more Houses to Controversial Institutional Investor, Reports

February 14, 2022
Share this Post: 

According to Bloomberg News, Zillow has sold off more of the housing stock that it was left with after exiting iBuying late last year.

Citing sources familiar with the matter, Bloomberg reported on Friday that Wall St investor Pretium Partners recently bought some 800 properties from Zillow for around $300 million and has agreed to purchase 400 more for roughly $150 million.

In a letter to shareholders accompanying Zillow's Q4 earnings report last week, CEO Rich Barton said that the company's efforts to sell off the residual housing stock on Zillow's books was progressing "faster than we anticipated at better unit economics than we projected".

Although selling off houses that the company bought or agreed to buy when it was still trying to scale its iBuying division to institutional investors such as Pretium might be beneficial for Zillow on a business level, there are negative PR consequences.

As the likes of iBuying expert Mike DelPrete and others have pointed out, many of the institutional investors looking to buy houses at scale from iBuyers such as Zillow and Opendoor are doing so with the intention of using them as rental cash-cows. Such a practice is not only viewed in a negative light because of the affordability crisis and lack of housing inventory on the US market currently but also because of some of the accusations levelled at Pretium.

Zillow has long cultivated an image of a fair housing champion, regularly publishing research on housing inequality and sponsoring programming events for Historically Black Colleges and Universities among other efforts. Pretium Partners has been accused by Non-Profit Organizations of disproportionately evicting tenants in majority-black areas and as such the association might be uncomfortable for the Seattle based portal company.

Both Zillow and Pretium declined requests to comment from Reuters and Bloomberg.

February 14, 2022
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Rightmove Not Listening
Rightmove to ‘Reject’ Listings Without a Price—and None of Its Current Listings Are Compliant

From today, new listings that don’t display a price cannot be uploaded to Rightmove. Rightmove made the announcement to comply...

Read More
Zigbang Investment Scaled
Zigbang Secures $77m Funding Before Anticipated IPO

Real estate marketplace ZigBang has raised ₩100 billion ($77 million USD) in what is believed to be a pre-IPO equity...

Read More
Shutterstock 1668133759 Scaled
Offerpal secures pre-seed funding round

Proptech startup Offerpal has raised an undisclosed pre-seed funding round led by Swedish venture capital firm PropTech Farm, with Offerpal...

Read More
Immowelt And Remax Partnership
Immowelt and RE/MAX Expand Their Partnership

Remax Germany and immowelt will increase their collaboration through shared marketing services. Immowelt will now provide some of its digital...

Read More

Popular News