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hicago’s MLS, Midwest Real Estate Data (MRED), has sharply rebuked Zillow’s claim that its Private Listing Network (PLN) creates a path for racial discrimination, arguing that Zillow is exploiting fair‑housing rhetoric to safeguard its own commercial interests. MRED said Zillow’s recent study was driven by profit motives and a desire to maintain control over listings, and dismissed the finding that PLN listings were twice as common in majority‑white neighborhoods compared with majority‑non‑white ones.
In a statement sent to MLS members and posted publicly, MRED accused Zillow of using Illinois data to further a “cynical strategic objective” aimed at preserving revenue by limiting listing distribution. The MLS cited an internal document that surfaced during Zillow’s lawsuit with Compass. Drafted in December 2024 and later shared by Compass CEO Robert Reffkin, the memo outlined Zillow’s plan to enforce public listings and penalize brokers who advertise off‑market homes if the National Association of Realtors’ Clear Cooperation Policy is rolled back. It also described a strategy to mobilize local and national groups to warn agents about fair‑housing risks tied to reduced market transparency.
Zillow has criticized MRED’s PLN since it introduced new Listing Access Standards earlier this year. Those standards would prevent PLN listings from appearing on Zillow, but enforcement in Chicago has yet to begin. Zillow’s analysis last week claimed that private listings obscure the market and worsen segregation in the city. A Zillow spokesperson noted that the referenced document was a “scratch pad” from December 2024 that was quickly sunset as the company shifted focus to new listing standards. The spokesperson urged MRED to consider whether its practices unintentionally exclude buyers of color in Chicago, lamenting the defensiveness amid clear data indicating the PLN perpetuates the city’s segregated housing history.
The dispute unfolds amid Compass’s lawsuit against Zillow over the new listing standards. In Chicago, the PLN is a core component of Compass’s three‑phase marketing strategy. According to Compass Regional Vice President Fran Broude, 45 % of this year’s listings began as office exclusives, and 87 % of those eventually entered the PLN. If a sale does not occur during the private period, the property typically goes public. Properties sold during the private phase effectively bypass Zillow, limiting visibility for consumers not already working with an agent. Sellers decide how their homes are listed, and many favor private listings to test pricing and market conditions.
Compass defends its private‑listing approach, noting that its website informs users when exclusive listings match their search, though viewing them requires contacting an agent or visiting an office. Despite equal broker access to the PLN, fair‑housing advocate Michael Chavarria of the HOPE Fair Housing Center warns that private networks could foster a new era of redlining. He points out that about 43 % of homebuyers start online, twice the share that begins by contacting a realtor, and that brokerage‑exclusive listings reduce transparency for consumers. Chavarria argues that true availability requires open access, not a fee‑for‑service model that necessitates a real‑estate license.
MRED reiterated its commitment to fair housing, stating that the PLN was created to address transparency concerns around off‑market deals. The MLS claims it scans all private and active listings for violations and that any bad actors face professional and legal consequences. MRED also challenged Zillow’s methodology, which surveyed listings on a single day in October. It noted that majority‑white neighborhoods have three times as many listings as majority‑non‑white ones and that institutional investors often target non‑white neighborhoods. MRED maintains that because every broker can access the PLN, it promotes a fair market, countering Zillow’s assertion that the network enables exclusionary shadow markets.
