T
he shift towards private listings could make it harder for first-time buyers and those in areas dominated by PLN-friendly brokerages to navigate the homebuying process. Realtor.com economist Hannah Jones notes that first-timers are already facing significant challenges, including affording a down payment and navigating complex market conditions.

    In areas where large brokerages like Compass have a strong presence, private listings may become more prevalent. However, most private listings eventually end up on the MLS, suggesting that the impact of private networks on the overall market may be limited. According to Bright MLS chief economist Lisa Sturtevant, nine out of ten private listings are marketed broadly on the MLS.

    The growth of private listing networks could lead to a more fragmented marketplace, making it harder for consumers to find available inventory and potentially increasing the complexity of buying and selling homes. Industry leaders have raised concerns about market transparency, brokerage consolidation, and agents' fiduciary responsibility to sellers. However, the impact on prospective homebuyers remains unclear.

    First-time buyers are likely to be disproportionately affected by a more complex or less transparent homebuying process. According to Realtor.com's Hannah Jones, first-timers already face significant barriers, including affordability and saving for a down payment. If private networks continue to grow, it may become even more challenging for them to navigate the market.

    In areas where Compass has a strong presence, such as the Bay Area, the brokerage's private listings could have a more significant impact on the local market. However, in other regions, the numbers of private listings may be less substantial. Keller Williams' KW GO franchise also announced $1 billion in private inventory across its territory, primarily focused on Texas metros.

    The current housing shortfall is primarily driven by restrictive zoning, high borrowing and construction costs, and mortgage rate lock-in effects, rather than the growth of private listing networks. As a result, the impact of private networks on the overall market may be relatively small, with most listings eventually ending up on the MLS.