A federal judge in May ordered Chicago's listing service to restore Zillow's access to 43,000 property listings after a data cutoff left local buyers with incomplete search results.
The dispute centers on a 2025 rule change by the National Association of Realtors (NAR) that allows sellers to delay public listings or market homes exclusively through a single brokerage office. Some properties now never reach Zillow, Redfin, or Realtor.com.
Zillow sued Midwest Real Estate Data (MRED) and brokerage giant Compass in federal court in Chicago in early May, accusing them of conspiring to hide listings in Compass's Private Listing Network and push Zillow out of the market, Axios reported. MRED is the multiple listing service for the entire Chicago area, handling roughly 250,000 listings annually. Hinsdale agents access listings through MRED via Mainstreet Realtors.
On May 20, MRED cut Zillow's data access. Before the cutoff, nearly 5,000 homes appeared on Zillow in Chicago. By that afternoon, the number dropped to just over 2,000, CNN reported.
Two days later, on May 22, a federal judge ordered MRED to restore access. The court also ruled Zillow cannot selectively exclude listings from MRED's feed, including nine listings Zillow had initially refused to display, according to Loop North News.
"If I'm a seller, I'm furious, but I don't think the sellers get that at first," Jeff Lichtenstein, an agent at Echo Fine Properties, said in a May 22 interview reported by Axios. "They sell once every 11 years on average."
The lawsuit remains pending. No trial date has been set.
What this means on your block
Inventory in the Chicago metro area is already down 9.5% year-over-year, according to Amy Robey of Mainstreet Realtors, writing in Hinsdale Magazine. First-time buyers have hit a record low of 21% nationally, per NAR's 2026 Generational Trends report. Baby Boomers now make up 42% of buyers, largely through equity-based purchases.
In a market this tight, listings that never reach public search sites could mean Hinsdale buyers miss properties entirely. Tanya Monestier, a law professor at the University of Buffalo, told CNN on April 26 that the system may require buyers to check individual brokerage websites to find homes. "No one even knows this is happening," she said.
A March 2026 survey of 213 experienced agents found more than half view private listings unfavorably, and a third said the practice should be discouraged entirely, according to National Mortgage Professional.
Other changes hitting buyers and sellers
Since August 2024, buyers must sign a formal written agreement with their agent before touring any home. The requirement gives buyers a clearer picture of costs upfront but adds a step before the first showing.
In January 2026, Compass acquired Anywhere Real Estate, parent of Century 21, Coldwell Banker, Sotheby's International Realty, and Corcoran, for $1.6 billion in stock. The combined firm now has roughly 340,000 agents across 120 countries. Zillow alleges Compass holds three seats on MRED's 17-member board.
Meanwhile, more than 80% of buyers now use AI tools during their home search, whether comparing mortgage rates, visualizing renovations, or testing negotiation strategies, according to a Realtor.com survey cited by Robey. Still, 88% of buyers nationally purchased through an agent, and 91% said they would use that agent again, per NAR's 2026 report.
The case's outcome could determine whether Hinsdale sellers gain more control over when their listing goes public or whether buyers lose visibility into what's actually for sale.
