Zillow sees 3% drop in traffic but advances AI in real estate services

Zillow reported a 7% increase in revenue to $724 million for the third quarter of 2026, but also recorded a net loss of $158 million as visitor traffic to its platforms declined by 3%, according to HousingWire.

The company saw average monthly unique users fall to 215 million, with total visits down 5% year-over-year to 2.3 billion, based on Comscore data. Despite this, Zillow maintained a dominant 77% share of average monthly unique visitors within the real estate category.

Zillow highlighted that its AI search mode, now available to all signed-in users, significantly boosts engagement, with users spending nearly three times longer on the site when using this feature.

Executives noted that buyers typically spend two to three hours weekly on Zillow over about five months, and that the majority of U.S. residential real estate transactions are facilitated through Zillow's professional software.

The company is also leveraging AI to enhance productivity for real estate professionals and internal engineering teams, reportedly increasing production changes by 60% compared to 2024.

Zillow's leadership emphasized their commitment to creating a faster, easier, and more affordable moving experience, despite facing potential scrutiny from consumer advocates and lawmakers.