Zillow Upgrades Rentals Zestimate

August 25, 2021
Share this Post: 

American portal giant Zillow has announced this week that it has upgraded its AVM for rentals.

This new version of the so-called Rent Zestimate is reportedly 5% more accurate than its predecessor and generates a property's expected rent income by considering a home's physical attributes and amenities, including square footage, number of bedrooms and bathrooms, and whether it has air conditioning, as well as public data such as the last sale price.

According to a press release, there are plenty of Americans who might benefit from an accurate rental price estimation for their property. Company research showed that 33 of the 50 largest U.S. metros feature rents higher than typical monthly mortgage payments and 7 of 10 rental properties in the U.S. are owned by individuals who typically own just one or two properties

They say that data is the new gold, and Zillow's newly improved tool is not just using data but is actively seeking it out as well. If a user is not satisfied with the Zestimate number given they are encouraged to 'claim' their property in the back end of Zillow's website and manually input data on the property such as the number of bedrooms, square footage and whether the property has undergone recent improvements.

 

Since its creation in 2006 by Zillow's Chief Analytics Officer Dr Stan Humphries, the Zestimate has been one of Zillow's crown jewels. The tool was in many ways the company's big breakthrough and in a recent podcast interview CEO Rich Barton spoke of just how important the tool was for Zillow in the early days and how the company's servers crashed from overuse within hours of its launch.

The Zestimate is constantly being tweaked and improved to give more accurate prices. Over the years Zillow has offered significant prize money to developers who can beat (and subsequently improve) its algorithm and recently announced that through the use of neural networking capabilities its sales Zestimate had a median error rate of only 6.9%.

The company is now so confident in the prices that it spits out that in February it made the bold decision to tie the offers it makes for homes through its iBuying division to the prices consumers see on their Zestimates.

August 25, 2021
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

Zumper Movoto Deal
US Portal Operators OJO Labs and Zumper Sign Listings Deal

The US real estate portal operator OJO Labs has announced that it has signed a listings partnership deal with rental...

Read More
Women In Tech Rea And Zoopla
REA Group and Zoopla Backing Women in Tech Initiatives

Both leading Australian portal operator REA Group and British property portal Zoopla have today announced measures to back women in...

Read More
Alma Media House Symmetry
Alma Media Q3 Figures Show a Healthy Company as Stock Trades at Record High

Alma Media, the operator of Finland's two largest real estate marketplaces, has released figures from its Q3 that show record...

Read More
Ke Holdings Layoffs
KE Holdings Lays Off Staff As Chinese Market Cools

KE Holdings, the operator of China's largest real estate marketplace and brokerage Beike, has laid off workers in Shanghai according...

Read More

Popular News