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40‑page study funded by Zillow rival CoStar reveals that borrowers who secured mortgages through Zillow Home Loans (ZHL) paid higher costs than those who used other lenders from 2022 to 2024. The report, titled *Empirical Analysis of Zillow Home Loans Pricing* and authored by Georgetown economics professor Steven C. Salop, compares 10,969 ZHL 30‑year fixed‑rate loans to those from other lenders using data from the Home Mortgage Disclosure Act.

    Salop found that ZHL mortgages became more expensive over the three‑year period, with an overall APR roughly 10 basis points higher than comparable loans and a 15‑basis‑point increase in 2024 alone. For example, a $337,000 loan in 2024 would cost a borrower about $21 more per month. Lower‑income borrowers (earning $100,000 or less) and Black borrowers experienced the greatest price differences, while white and Asian borrowers faced similar costs, and Latino borrowers only saw higher rates in 2024.

    Zillow responded that the study was commissioned and paid for by a competitor and relies on selectively chosen data. The company said it does not consider critical factors such as business models, service levels, and customer choice, and that a credible analysis must control for loan products, geography, and credit score. Zillow maintains that it is committed to fair lending and pro‑consumer practices.

    The study also references two class‑action lawsuits—Taylor v. Zillow and Armstrong v. Zillow—accusing Zillow of boosting ZHL through illegal kickbacks. A judge merged the cases earlier this month. Salop’s research was not contingent on CoStar’s funding; he stated that all analysis and opinions are his own.

    Salop plans to analyze 2025 data when available to assess further market developments. The report’s key takeaway is that ZHL borrowers paid significantly higher mortgage costs than those who used other lenders during the 2022‑2024 period.