CoStar Group has agreed to acquire Zonda, a leading provider of new home construction data and construction software, for $800 million in cash. This marks the company’s most direct entry into the nearly $1 trillion U.S. new home construction market.
CoStar Group has agreed to acquire Zonda, a leading provider of new home construction data and construction software, for $800 million in cash. This marks the company’s most direct entry into the nearly $1 trillion U.S. new home construction market.
The deal, announced Friday, gives CoStar access to Zonda’s lot-level database, builder workflow software, and two new consumer housing marketplaces operating in the U.S. and Canada, NewHomeSource and Livabl.
According to the U.S. Census, annual new home construction in the United States is approaching $1 trillion. Zonda serves more than 3,000 customers across the homebuilding ecosystem, including leading builders, developers, suppliers and financiers. The majority of its revenue is subscription-based, and the company reports a net customer retention rate of 104%.
At the core of Zonda’s platform is a proprietary site-level database covering new housing communities, land development activity, construction status, home sales, and builder operations. The company says its data is integrated into builders’ workflows across land acquisition, development planning, capital allocation, and sales operations.
NewHomeSource and Livabl are both operated by Zonda and connect buyers with new construction inventory, offering floor plans, virtual tours, pricing, incentives, and community details. Both platforms deal exclusively with new construction, allowing builders to conduct targeted lead generation and consumer marketing without worrying about resale inventory.
CoStar will also combine 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 exceptional business with deep relationships across the homebuilding industry and one of the most valuable and unique data sets in new residential real estate,” KoStar Group founder and CEO Andy Florence said in a Friday announcement. “This acquisition extends CoStar Group’s leadership into a major new segment of the real estate industry and strengthens our ability to provide comprehensive information solutions to our clients across all major real estate segments.”
CoStar expects this acquisition to be accretive to adjusted earnings per share in the first full year of ownership, the company said. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
The deal comes as CoStar weathers intense investor scrutiny over its spending on housing portal Homes.com. A Costar spokesperson said Costar has concluded a cycle of significant investments in the country and is focused on “margin expansion and profitable growth.”
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