Z
illow’s latest study of the Chicagoland MLS, Midwest Real Estate Data (MRED), shows that its private listing network (PLN) disproportionately serves majority‑white neighborhoods. Analyzing active listings as of Oct. 21, Zillow found that homes on the PLN were 2.2 times more likely to be in white‑majority areas. After adjusting for price and other variables, 8 % of homes sold in white‑majority districts appeared on the PLN, compared with only 3.4 % in districts where non‑whites were the majority.

    The research echoes sociologist Elizabeth Korver‑Glenn’s work, which argues that agents rely on their social circles for business. Because white agents’ networks are largely white, Asian, Black, and Latino buyers are often left out of informal listings, unintentionally perpetuating segregation. Zillow’s senior economist, Orphe Divounguy, called the findings evidence of “digital redlining” and warned that good intentions can’t justify expanding such practices.

    MRED’s CEO, Rebecca Jensen, defended the PLN in a recent letter to its 50,000 members, claiming it offers compassionate support rather than punitive fines during difficult sales. The letter came after Zillow began enforcing new standards that ban listings promoted publicly but not widely available through IDX. Zillow has not applied these rules in MRED’s area because of the PLN’s existence, citing a “unique situation.”

    Zillow’s stance against private listings aligns with its broader criticism that they harm consumers and undermine an open market. Compass, a major brokerage, counters this view and is currently suing Zillow over its private‑listing ban.