CoStar Group has agreed to acquire Zonda, a leading provider of new home construction data and builder software, for $800 million in cash — marking the company’s most direct move into the nearly $1 trillion U.S. new residential construction market.
The deal, announced Friday, gives CoStar access to Zonda’s lot-level database, builder workflow software and two consumer-facing new home marketplaces, NewHomeSource and Livabl, which operate in the United States and Canada.
According to the U.S. Census, the annual value of new residential construction in the U.S. approaches $1 trillion. Zonda serves more than 3,000 customers across the homebuilding ecosystem, including major builders, developers, suppliers and lenders. The majority of its revenue is subscription-based, and the company reports a 104 percent net customer retention rate.
At the core of Zonda’s platform is a proprietary, lot-level database covering new home communities, land development activity, construction status, home sales and builder operations. That data, the company says, is embedded in builder workflows spanning land acquisition, development planning, capital allocation and sales operations.
NewHomeSource and Livabl, both operated by Zonda, connect buyers with new construction inventory, offering floor plans, virtual tours, pricing, incentives and community details. Because both platforms carry new construction exclusively, they give builders targeted lead generation and consumer marketing uncluttered by resale inventory.
CoStar also plans to pair Zonda’s Envision visualization platform with Matterport’s spatial technology to create more immersive digital marketing tools for builders and consumers, according to the company.
“Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate,” Andy Florance, founder and CEO of CoStar Group, said in Friday’s announcement. “This acquisition extends CoStar Group’s leadership into a major new segment of the real estate industry and strengthens our ability to provide clients with comprehensive information solutions across every major real estate segment.”
CoStar expects the acquisition to be accretive to adjusted earnings per share in the first full year of ownership, according to the company. The deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
The deal comes as CoStar navigates investor scrutiny over its spending on Homes.com, its residential portal. CoStar has said its heavy investment cycle there has ended and that the company is focused on “margin expansion and profitable growth,” according to a company spokesperson.
