CoStar Group has closed its $800 million all-cash acquisition of Zonda, the homebuilding industry’s leading data and analytics provider, the commercial real estate information giant announced Friday. The deal, first announced in May, closed after CoStar secured all regulatory approvals and satisfied customary closing conditions.
The acquisition pushes CoStar deeper into new-home construction, a market the company estimates generates roughly $400 billion in annual U.S. sales β larger than the entire multifamily rental sector. Zonda brings a proprietary, lot-level database tracking communities, land development, construction status and builder operations, along with consumer-facing platforms NewHomeSource.com and Livabl, which give homebuyers floor plans, pricing, incentives and virtual tours for new-construction communities. The deal also brings CoStar the Envision visualization and digital-merchandising tool.
“Zonda has built an exceptional business around information the homebuilding industry relies on daily,” said Andy Florance, CoStar Group’s founder and CEO, in the announcement. He said combining the two companies would “deliver significantly more value to builders, lenders and other industry participants.”
Jeff Meyers, president of Zonda, framed the deal as a scale play. “By joining CoStar Group, we gain the scale, technology, and resources to accelerate innovation and deliver greater value to builders, developers, and housing professionals,” he said.
A profitable, recurring business
Zonda generated approximately $170 million in revenue in 2025 with a 23% adjusted EBITDA margin, according to CoStar, which described the business as scaled, profitable and built on highly recurring subscription revenue. The company serves more than 3,000 customers, including many of North America’s largest homebuilders, developers, suppliers and lenders, spanning the industry from land acquisition through home sales.
CoStar said it sees integration potential between Zonda’s new-home data and the 3D spatial-imaging technology it acquired with Matterport, aiming to enhance digital merchandising and virtual-tour experiences for new-construction listings. The company also pointed to cross-selling opportunities between Zonda’s builder-focused customer base and CoStar’s existing commercial and residential networks.
The transaction lands amid a strong quarter for CoStar’s residential business. The company reported total revenue of $925 million for the second quarter of 2026, up 18% year over year, with adjusted EBITDA of $184 million β more than double the prior year. Residential segment revenue rose 33% to $444 million and turned adjusted-EBITDA positive for the period, according to figures included in the acquisition announcement.
What it means
The closing gives CoStar a foothold in new-home data to match its established dominance in commercial listings and analytics through platforms like LoopNet and Apartments.com. Folding Zonda’s builder-side data into that ecosystem could let CoStar offer lenders, suppliers and investors a more complete view of the housing pipeline β from raw land through a completed sale β rather than data confined to resale listings. That is CoStar’s stated rationale; how quickly the two data sets actually get integrated, and whether builders embrace a combined platform, remains to be seen.
The deal also continues a run of major moves by CoStar, which has been building out its residential and industrial data franchises through acquisitions in recent years, including its purchase of 3D-imaging company Matterport. BofA Securities advised CoStar on the transaction, with Latham & Watkins serving as legal counsel.
The purchase comes as homebuilders across the country compete with data center developers for buildable land, a dynamic that is reshaping where and how new communities get built β precisely the kind of shift Zonda’s lot-level tracking is designed to capture. CoStar has also been active on the commercial side of the business, saying in a separate report this month that it expects U.S. industrial demand to outpace new supply by late 2027 as construction slows.
