CoStar Group Completes $800 Million All-Cash Acquisition of Zonda
The deal extends CoStar's data and marketplace reach into the nearly $1 trillion U.S. new-home construction market.
CoStar Group, Inc. (CSGP) completed its $800 million all-cash acquisition of Zonda, the data and analytics provider focused on the new-home construction industry. The deal, first announced in May 2026, brings Zonda's proprietary lot-level database, builder software, and consumer marketplaces under the same roof as CoStar's commercial and residential real estate platforms.
Zonda serves more than 3,000 customers across the homebuilding ecosystem, including many of the largest residential builders, developers, suppliers, and lenders in North America. Its platform delivers end-to-end solutions spanning land acquisition, development planning, homebuilding analytics, construction forecasting, community marketing, and operational workflow management. The majority of its revenue is subscription-based, with 104% net customer retention.
The acquisition positions CoStar to tap into a market that the U.S. Census values at nearly $1 trillion in annual new residential construction—a figure the company noted is materially larger than the annual rent rolls of the institutional apartment and office sectors it has already monetized. CoStar said the deal extends its leadership into a major new segment of the real estate industry and strengthens its ability to provide clients with comprehensive information solutions across every major property segment.
"Zonda has built an exceptional business around information the homebuilding industry relies on every day," said Andy Florance, Founder and Chief Executive Officer of CoStar Group. "This is a massive market with a sophisticated group of builders, developers, lenders, investors, and suppliers that need purpose-built information, analytics, and marketing solutions. With the acquisition now complete, we have the opportunity to bring together Zonda's proprietary new construction data, software, and builder relationships with CoStar Group's technology, analytics, and marketplace capabilities".
Zonda also operates NewHomeSource and Livabl, two leading online new-home marketplaces in the United States and Canada. Top homebuilders contribute listings directly to these marketplaces, giving buyers visibility into new-home inventory across the development ecosystem. Because the platforms feature new construction exclusively, they give builders targeted consumer marketing, lead generation, and merchandising uncluttered by resale inventory.
CoStar said the acquisition would pair Zonda's Envision visualization and digital merchandising capabilities with Matterport's spatial technology, which CoStar acquired in early 2025. Together, the companies aim to create richer digital experiences for builders and consumers and improve how new-construction homes are marketed, visualized, and discovered online.
The acquisition was expected to be accretive to adjusted earnings per share in the first full year of ownership. BofA Securities served as financial advisor, and Latham & Watkins LLP served as legal advisor to CoStar Group.