CoStar Buys Zonda for $800M, Expands Residential Data

CoStar Group, Inc. has significantly bolstered its presence in the residential property sector through the acquisition of Zonda for $800 million in an all-cash transaction. This strategic move, finalized on May 29, 2026, integrates Zonda's extensive data and software capabilities, which cater to the homebuilding ecosystem, into CoStar's established commercial real estate intelligence platform.

Zonda, previously backed by MidOcean Partners, operates a proprietary database that meticulously tracks granular details of new home communities, land development activities, construction progress, sales figures, and builder operations across North America. The company also manages prominent new home sales marketplaces, including NewHomeSource and Livabl, serving a substantial customer base of over 3,000 entities, ranging from large-scale residential developers and builders to suppliers and financial institutions.

The acquisition is poised to deliver enhanced value to the homebuilding industry by providing deeper market insights, streamlining operational workflows, and offering advanced analytics. Andy Florance, CEO of CoStar Group, emphasized that this integration extends the company's leadership into a critical new segment of the real estate market, promising more comprehensive data and analytical tools for industry participants.

This expansion aligns with broader market trends where data aggregation and sophisticated software solutions are increasingly vital for navigating the complexities of the real estate development cycle. The residential construction sector, a multi-trillion dollar industry globally, benefits immensely from accurate, real-time data to inform investment, development, and sales strategies. Zonda's established position in this niche makes it a valuable addition to CoStar's portfolio.

The transaction saw significant advisory support, with BofA Securities and Latham & Watkins LLP advising CoStar Group. On the seller's side, MidOcean Partners was supported by financial advisors Houlihan Lokey Capital and Solomon Partners Securities, alongside legal counsel Gibson, Dunn & Crutcher LLP.

By incorporating Zonda's specialized assets, CoStar Group is strategically enhancing its offering beyond commercial real estate. This move allows the company to capture a more complete picture of the property lifecycle, from initial land acquisition and construction through to sales and development, creating a more unified data and analytics solution for a wider array of real estate professionals.

The integration of Zonda's marketplaces and data infrastructure is expected to unlock new synergies, potentially leading to more efficient lead generation for builders and improved discovery for homebuyers. This acquisition underscores CoStar's commitment to consolidating key data providers and expanding its market intelligence capabilities across diverse real estate verticals.