CoStar Group Announces Strategic Acquisition of Zonda for $800 Million

On May 29, 2026, CoStar Group, Inc. (NASDAQ: CSGP), a prominent provider of online real estate marketplaces and analytics, announced its decision to acquire Zonda, a leading entity in new home construction data and analytics, for a substantial $800 million in cash. This acquisition marks a significant step for CoStar as it seeks to expand its operations into the burgeoning homebuilding segment.

Zonda has established itself as a vital player in the homebuilding ecosystem, serving over 3,000 clients, including some of North America’s largest residential builders, developers, suppliers, and lenders. The company’s platform offers comprehensive solutions that cover land acquisition, development planning, homebuilding analytics, construction forecasting, community marketing, and operational workflow management.

A standout feature of Zonda is its proprietary, lot-level database that encapsulates essential data on new home communities, land development activities, construction status, home sales, and builder operations. This database is deeply integrated into builder workflows, aiding in underwriting, land strategy, capital allocation, development planning, and sales operations.

Additionally, Zonda operates NewHomeSource and Livabl—two premier online marketplaces dedicated to new home listings in the United States and Canada. These platforms enhance visibility for buyers, presenting them with detailed information on floor plans, virtual tours, pricing, and community features, which facilitate the purchasing process.

CoStar Group recognizes that the annual value of new residential construction in the U.S. nears $1 trillion, indicating a market significantly larger than the rental income derived from institutional apartment and office sectors. By acquiring Zonda, CoStar aims to leverage Zonda’s builder relationships, workflow integrations, and marketplace capabilities to foster cross-selling opportunities across its commercial, residential, multifamily, lending, and analytics businesses.

"Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate," stated Andy Florance, Founder and Chief Executive Officer of CoStar Group. He emphasized that the acquisition would enhance CoStar's leadership within the real estate industry while providing clients with comprehensive information solutions across all major segments.

The acquisition will also enable CoStar to combine Zonda's Envision visualization and digital merchandising capabilities with its existing technology, particularly through its partnership with Matterport, a leader in spatial technology. This integration aims to enrich the digital experiences for builders and consumers alike, thereby revolutionizing how new construction homes are marketed and visualized online.

The acquisition is projected to be accretive to CoStar's adjusted earnings per share (EPS) in the first full year of ownership. The deal is expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals.

CoStar has enlisted BofA Securities as its financial advisor and Latham & Watkins LLP as its legal advisor for the transaction.

CoStar Group's acquisition of Zonda signifies a strategic leap into a new segment of the real estate market, strengthening its position as a leader in providing comprehensive data and analytics across various real estate sectors. The move not only promises to enhance CoStar’s existing offerings but also to deliver deeper insights and efficiencies within the homebuilding industry. As the real estate landscape continues to evolve, this acquisition could be a pivotal factor in shaping the future of how properties are marketed and sold.