Bloomberg Talks Zillow Group CEO Jeremy Wacksman Talks US Housing Market
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Feb 12, 2025 Jeremy Wacksman, CEO of Zillow Group, shares insights on navigating the tumultuous U.S. housing market, tackling challenges like high mortgage rates and low inventory. He discusses Zillow's impressive revenue growth despite these hurdles and emphasizes the ongoing demand from various buyer demographics. With strategic partnerships, like one with Redfin, Wacksman explores how collaboration is reshaping rental listings. The conversation also touches on the role of AI in real estate and the need for responsible innovation to improve customer experiences.
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Zillow's Stock Drop and Housing Market Challenges
- Zillow's stock dropped significantly due to a revenue forecast miss, despite the company expecting its first profitable year since 2012.
- The housing market remains challenged, impacting Zillow's performance.
Impact of Mortgage Rates and Low Inventory
- High mortgage rates and low housing inventory contribute to the challenging housing market. Many sellers feel locked into their current mortgages due to higher rates.
- This reluctance to sell further restricts the already limited supply, impacting buyers' affordability.
Addressing Housing Supply Shortage
- The housing shortage requires solutions at the state and local levels, such as permitting reform, tax incentives, and financing options for builders.
- Chronically low housing supply is a major challenge, with an estimated 4.5 million homes underbuilt since the financial crisis.