Today, Explained Is Zillow really buying all the houses?
Nov 17, 2021
Jerusalem Demsas, a Vox policy reporter and co-host of The Weeds, tackles the myths surrounding Zillow's influence on the housing market. She dispels the conspiracy that Zillow is buying up all the houses and discusses their flawed iBuying strategy. The conversation highlights challenges first-time homebuyers face amid institutional investors and explores how restrictive zoning laws exacerbate the housing crisis. Demsas also examines legislative efforts in California and the limitations of federal initiatives in addressing the urgent need for affordable housing.
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Zillow Concerns
- Listeners wrote to the Today, Explained team, concerned about Zillow's impact on the housing market.
- The team initially dismissed it but later revisited the topic due to rising public concern and even LA City Council's actions.
iBuyers' Small Market Share
- iBuyers like Zillow and institutional investors play a minor role in the housing market.
- iBuyers made up less than 1% of home sales, and institutional investors' share is decreasing.
iBuyer Business Model
- iBuyers aim to simplify home selling by handling staging, cleaning, and timing, offering convenience over potential market value.
- They use algorithms for pricing, often slightly below market value.