CoStar Group to Acquire New Home Data Provider Zonda for $800 Million
On May 29, 2026, CoStar Group (NASDAQ: CSGP) announced a definitive agreement to acquire Zonda, a leading provider of new home construction data, software, and residential real estate marketplaces, for $800 million in cash.
Zonda serves over 3,000 customers across the residential construction ecosystem—including developers, homebuilders, suppliers, and lenders—with a proprietary, lot-level database covering community development, construction status, land transactions, and builder operations. The company also operates major online new home marketplaces NewHomeSource.com and Livabl. Zonda operates a subscription-based business model with an impressive 104% net customer retention rate.
Andy Florance, Founder and CEO of CoStar Group, emphasized the strategic entry into the residential construction market:
"Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate... This acquisition extends CoStar Group's leadership into a major new segment of the real estate industry and strengthens our ability to provide clients with comprehensive information solutions across every major real estate segment."
CoStar Group pointed out the massive scale of the new home construction market, citing US Census Bureau data:
"According to the Census, the annual value of new residential construction in the U.S. approaches $1 trillion - a market materially larger than the annual rent rolls of the institutional apartment and office sectors that CoStar Group has so successfully monetized."
In addition to data integration, CoStar plans to pair Zonda's Envision digital merchandising and visualization tools with Matterport’s spatial technology (which CoStar recently acquired) to create richer digital and virtual experiences for home marketing. The cash transaction is expected to close in the second half of 2026 and be accretive to adjusted EPS within the first full year of ownership.