Zillow CEO Jeremy Wacksman has shed light on what he believes is causing the US housing market’s “crisis”: a shortage of new properties. Despite sales hitting a 30-year low in 2024, the real estate site remains popular, with hundreds of millions of monthly visitors.
Wacksman attributed the issue to an affordability crisis driven by an availability crisis. Home prices have increased significantly since pre-pandemic levels, outpacing income growth. The average home value is nearly $370,000, with only 1.3 million homes for sale nationwide.
According to Wacksman, if the industry had continued to build new properties to meet buyer demand, it might not be in the current crisis state. “We have been chronically under-building since the global financial crisis,” he said. “Less supply and a lot of demand is going to keep home prices elevated.”
Zillow’s business model relies on advertising revenue from real estate companies targeting users. The company has seen significant growth, with its stock increasing over 60%. Despite this, Wacksman emphasizes that the key issue is not the market itself but rather seller transparency.
The company has introduced a “Zillow-ban” policy requiring sellers to post homes within 24 hours of listing or face removal from the site. This move aims to promote buyer transparency and empower consumers to shop independently.
Wacksman also discussed Zillow’s shift towards a “super app” structure, connecting buyers with various resources, including mortgage providers and rental properties. The platform offers innovative features like three-dimensional walk-through options to enhance user experience.
For agents looking to market homes effectively in the current market, Wacksman stresses the importance of focusing on software solutions that aid their work.
Source: https://www.dailymail.co.uk/real-estate/article-14955713/zillow-ceo-reveals-cause-housing-crisis.html