MRED fires back at Zillow report alleging bias in private listings

"includes statements such as everything about the hardline plan assumes we can be successful at using a hammer to keep sellers and agents on our site, and we want to punish the agent for choosing to put their listing on alternate networks. According to the planning documents, the goal of Zillow's hardline strategy was to get sellers to switch agents or agents to switch brokerages to ones in favor of putting listings on Zillow."

"We want to prevent the use of shadow networks off the MLS that could lead to discrimination and exclusion, the statement reads. The response comes after Zillow published an analysis in which it found that homes in majority-white neighborhoods in Chicago are more than twice as likely to be listed privately than homes in majority-non-white neighborhoods. The analysis was based on an examination of over 40,000 residential listings active on Oct. 21, in the MRED platform and distributed via MLS GRID."

"One of the tactics Zillow listed to help facilitate this plan was to mobilize local and national organizations to publicly warn brokers and agents on the fair housing risks of reduced access to real estate information. Given this context, MRED wrote in its statement that it is not surprising that Zillow conducted a one-day study in the Chicagoland market that attacked MRED's PLN."

MRED launched the PLN in 2016 to make all properties available to all agents and brokerages and to prevent shadow networks off the MLS that could cause discrimination and exclusion. Zillow analyzed more than 40,000 MRED listings active Oct. 21 and found homes in majority-white Chicago neighborhoods were more than twice as likely to be listed privately than homes in majority-non-white neighborhoods. MRED cited Zillow internal planning documents made public by Compass CEO Robert Reffkin that describe a hardline strategy to keep listings on Zillow, punish agents using alternate networks, and mobilize organizations to warn brokers about fair housing risks. MRED said Zillow's one-day study attacked the PLN.

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