“Zillow Group said on Thursday that it lost $881 million on its algorithmic-driven home-flipping business last year…” Writes Wil Parker at The Wall Street Journal…
- “[Zillow] posted a consolidated net loss of $528 million in 2021, mostly because of its home-flipping business, Zillow Offers.”
- The good news for Zillow is their core business remains profitable. “Revenue for the core segment of Zillow, based around home listings on its website, rose 30% in 2021, compared with the previous year.”
NOTE: Zillow still has about 8,600 homes on its books. With home prices continuing to skyrocket there is still an opportunity for Zillow to generate more revenue from the failed venture.
Charles Forelle on Twitter really highlighted just how bad Zillow was at flipping homes… “Zillow lost $881 million flipping houses in a year when the median existing-home price rose 17%.”