CoStar acquires new home data platform Zonda for $800 million

CoStar Group has agreed to acquire Zonda, a leading provider of new home construction data and construction software, for $800 million in cash. This is the company’s most direct move into the nearly $1 trillion U.S. new home construction market.

The agreement, announced on Fridaygives CoStar access to Zonda’s lot-level database, builder workflow software and two consumer-facing new home marketplaces, NewHomeSource and Livabl, operating in the United States and Canada.

According to the US Censusthe annual value of new home construction in the US is approaching $1 trillion. Zonda serves more than 3,000 customers across the homebuilding ecosystem, including major builders, developers, suppliers and lenders. The majority of revenue is subscription-based, and the company reports a net customer retention rate of 104 percent.

The core of Zonda’s platform consists of a proprietary lot-level database that includes new residential communities, land development activities, construction status, home sales and construction activity. That data, the company says, is embedded in builders’ workflows, including land acquisition, development planning, capital allocation and sales activities.

NewHomeSource and Livabl, both operated by Zonda, connect buyers to new construction inventory and provide floor plans, virtual tours, pricing, incentives and community details. Because both platforms exclusively offer new construction, they offer builders targeted lead generation and consumer marketing, organized by resale inventory.

CoStar also plans to pair Zonda’s Envision visualization platform with Matterport’s spatial technology to create more immersive digital marketing tools for builders and consumers, the company said.

“Zonda has built an extraordinary company with deep relationships in the residential real estate industry and one of the most valuable proprietary data sets in new residential real estate,” Andy Florance, founder and CEO of CoStar Group, said in Friday’s announcement. “This acquisition extends CoStar Group’s leadership into an important new segment of the real estate industry and strengthens our ability to provide customers with comprehensive information solutions in every major real estate segment.”

CoStar expects the acquisition to be accretive to adjusted earnings per share in the first full year of ownership, the company said. The deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.

The deal comes as CoStar navigates investor scrutiny over its spending on Homes.com, its housing portal. CoStar has said the heavy investment cycle there has ended and the company is focused on “margin expansion and profitable growth,” according to a company spokesperson.

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