CoStar agrees to buy real estate data provider Zonda for $800M

CoStar Group (NASDAQ:CSGP) has entered into a definitive agreement to acquire Zonda, a prominent provider of new home construction data, homebuilder software, and residential marketplaces, for $800 million in cash.

The transaction pushes the real estate data giant squarely into the North American residential construction sector.

According to U.S. Census data, the annual value of new residential construction approaches $1 trillion, presenting a market significantly larger than the institutional apartment and office sectors that CoStar has traditionally monetized.

Zonda operates a highly subscription-reliant business model with a reported 104% net customer retention rate, serving more than 3,000 builders, developers, suppliers, and lenders.

At the center of the acquisition is Zonda's proprietary lot-level database, which tracks land acquisition, development planning, construction status, and home sales.

The platform also includes two major online new-home marketplaces, NewHomeSource and Livabl, which provide consumers with direct builder listings featuring floor plans and virtual tours, isolated from traditional resale inventory.

CoStar plans to utilize Zonda's builder integrations to generate cross-sell opportunities across its commercial, residential, multifamily, and lending businesses.

Additionally, the integration will combine Zonda’s digital visualization capabilities with the spatial technology of Matterport to enhance online consumer marketing for new construction.

The acquisition is projected to close in the second half of 2026, subject to customary closing conditions and required regulatory approvals.