Zillow Group Inc. Shares Plunge 2.74% to 2025 Low Amid Stagnant Housing Market, Shift to Outdoor Investments

Zillow Group Inc.’s Class C shares plunged 2.74% during intraday trading on Monday, hitting their lowest level since July 2025, according to Bloomberg data. The stock closed the session down 2.42%, extending its recent downturn amid ongoing market uncertainty.

The strategy of purchasing Zillow Group (Z) shares after they reached a recent low and holding for one week yielded mixed results over the past five years. While there were periods of positive returns, such as a 12.50% gain in 2024, there were also significant losses, including a 22.08% loss in 2023. The overall performance was volatile, with a 58.33% decline over the five years, indicating that this strategy was not consistently profitable.

The decline comes as Zillow navigates a stagnant housing market, where elevated interest rates and economic uncertainty have dampened transaction volumes. Despite these headwinds, the platform remains a central hub for real estate activity, with users continuing to engage with its tools for property research and virtual tours. However, the company’s reliance on a digital-first approach has not been enough to offset broader market pressures, as investors remain cautious about its long-term growth prospects in a slow-moving real estate sector.

Compounding the challenges, a recent Zillow survey in partnership with Thumbtack highlights a shift in consumer priorities toward backyard and outdoor property investments. Over 70% of homeowners expressed willingness to take on debt for renovations such as pools, patios, and gardens, signaling a trend that could divert attention from traditional homebuying. While this trend may drive demand for ancillary services, it also underscores the broader economic constraints limiting real estate transactions. Analysts note that Zillow’s ability to adapt to these evolving consumer preferences will be critical in maintaining user engagement and revenue growth in the coming quarters.