Homes.com Residential Network Reaches All-Time High of 149 Million+ Unique Monthly Visitors in February 2024

Rhea-AI Summary

Homes.com, the #2 Homebuying Portal, experiences a remarkable 567% year-over-year traffic growth, reaching 149 million unique visitors in February. CoStar Group's investment of over $1 billion in Homes.com has led to explosive growth and a unique 'Your Listing, Your Lead' business model, connecting buyers directly to agents. The company's extensive marketing campaign and focus on neighborhood-specific content have contributed to its success.

Insights

Market Research Analyst

The reported 567% year-over-year traffic growth for Homes.com is a noteworthy performance metric that reflects on the efficacy of the platform's marketing strategies and the 'Your Listing, Your Lead' business model. This model, which emphasizes direct connections between buyers and agents, appears to be a significant differentiator in the market. The substantial investment of over $1 billion by CoStar Group in Homes.com, particularly in targeted marketing efforts across various high-profile media events, has likely played a critical role in increasing the platform's visibility and user traffic.

From a market research perspective, the traffic growth also indicates a shift in consumer behavior towards online homebuying portals, which could suggest a broader trend in the real estate industry's digitization. The surge in traffic as compared to rivals like Realtor and Redfin underscores a competitive advantage that may translate into increased market share. However, it's important to note that traffic is just one indicator of success; the ability to monetize this traffic effectively and maintain a high level of user engagement will be important for the long-term sustainability of the growth.

Financial Analyst

The inclusion of CoStar Group, the parent company of Homes.com, in the S&P 500 and NASDAQ 100 indexes is indicative of its financial stability and the positive outlook investors may have regarding its growth prospects. The financial commitment to Homes.com, as well as the reported traffic growth, could have a favorable impact on CoStar Group's stock performance. However, it is essential to evaluate the return on investment of the $1 billion spent, especially in the context of the real estate industry's cyclical nature and current economic conditions.

Investors should assess the conversion rates of traffic to actual sales and the resulting revenue, as well as scrutinize the company's upcoming financial statements for evidence of the growth's sustainability. It would also be prudent to consider the operational costs associated with maintaining and further developing the platform, including the employment of a large workforce dedicated to content creation. While the growth figures are impressive, they must be balanced against the costs incurred and the potential for future revenue generation.

Homes.com is the #2 Homebuying Portal with 567% Year-Over-Year Traffic Growth

WASHINGTON--(BUSINESS WIRE)-- The Homes.com Residential Network reached more than 149 million unique visitors in February, cementing Homes.com’s position as the second-most trafficked homebuying portal. * Homes.com itself achieved a 567% year-over-year (YOY) traffic increase. **

The traffic data demonstrate the popularity of Homes.com’s unique “Your Listing, Your Lead” business model which connects buyers directly to the agents representing a given property listing, ensuring convenience and transparency for the buyer and the preservation of agents’ commissions. The February traffic figures more than double Realtor’s 66 million average unique monthly visitors and triple Redfin’s 44 million average unique monthly visitors. ***

“The latest traffic data for the Homes.com network is a validation of our unprecedented investment in building the most comprehensive and agent, seller and buyer friendly residential portal on the market,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “Our ‘Your Listing, Your Lead’ model, which works for agents rather than against them to preserve their local knowledge and relationships with buyers, is extremely popular and resonating well with brokers across the country. We are thrilled to see such a positive response from homebuyers and sellers as well.”

The explosive growth on Homes.com comes as CoStar Group announced that it has invested over $1 billion in the platform, including the industry’s largest marketing campaign across dozens of traditional and digital channels, including four Super Bowl advertisements and commercials in the Oscars, Emmys, the Olympics and nearly every major television and media event. The campaign is estimated to reach over 90% of households delivering more than 80 billion impressions. Additionally, the company employs over a thousand employees focused on developing unique and compelling neighborhood-specific content that can only be found on Homes.com.

CoStar Group purchased Homes.com in 2021 and rebuilt the site from the ground up, investing massively in ensuring that Homes.com has the most robust content of any home buying site. Homes.com’s growth comes as part of a period of significant growth and expansion for CoStar Group.

Founded in 1987, CoStar Group has grown to over 6,200 employees in 14 countries and is the result of its vision to digitize the real estate industry, empowering people to discover properties, insights, and connections that improve their businesses and lives. CoStar Group is included in the S&P 500 Index, one of the premier benchmarks of the U.S. equities market, and in the NASDAQ 100, one of the world’s largest preeminent large-cap indexes.

* Based on unique visits in February 2024 to the Homes.com Residential Network (which includes the Homes Network and the Apartments Network) and the Land Network, according to Google Analytics.

** Based on a comparison of year-over-year changes in unique monthly users for Homes.com comparing February 2024 to February 2023, as measured by Google Analytics.

*** Based on: (i) unique monthly users for Homes.com for February 2024, as measured by Google Analytics; (ii) average unique monthly users for Redfin for Q4 2023, as measured by Google Analytics, as reported in its earnings release on February 27, 2024; and (iii) average unique monthly users for Realtor.com for Q2 2024, based on internal data, as reported in its February 7, 2024 earnings release.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract over 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240314062398/en/

News Media Contact

Matthew Blocher

CoStar Group

(202) 346-6775

mblocher@costargroup.com

Source: CoStar Group

FAQ

What is the year-over-year traffic growth percentage for Homes.com?

Homes.com achieved a remarkable 567% year-over-year traffic increase.

How many unique visitors did Homes.com reach in February?

Homes.com reached more than 149 million unique visitors in February.

What is the unique business model of Homes.com?

Homes.com follows a unique 'Your Listing, Your Lead' business model that connects buyers directly to agents representing a property listing.

What is CoStar Group's investment in Homes.com?

CoStar Group has invested over $1 billion in Homes.com, leading to significant growth and expansion.

What is the focus of CoStar Group's marketing campaign for Homes.com?

CoStar Group's marketing campaign for Homes.com is focused on traditional and digital channels, including major events like the Super Bowl, Oscars, Emmys, and Olympics.