Zillow pulled Matterport's 3D tours from its site in October 2025. Six months later, the legal spat not only continues but threatens to redefine who controls real estate data in the digital age. This standoff between two giants of the U.S. real estate industry—Zillow Group and CoStar Group—has left thousands of agents and homeowners in limbo, unable to showcase their properties with the most popular 3D tour tool on the country's most-visited portal.
The Big Picture
The feud between Zillow and CoStar Group over Matterport 3D tours has escalated in recent months. CoStar, which acquired Matterport in April 2024 for approximately $1.6 billion, insists customers can post their tours on Zillow without issue. However, Zillow demands an executed written promise that CoStar won't sue them for doing so—something CoStar has refused to sign.
Matterport president Rob Hines stated Wednesday, May 27, 2026, that his firm has "repeatedly told Zillow, both publicly and in direct letters, that Matterport customers may post their tours on Zillow." He even offered a written pledge in a public statement: "Matterport customers own the tours they create and can post them wherever they want, and CoStar Group will not sue Zillow for displaying them. WE PROMISE." But Zillow isn't satisfied. In its Front Porch blog, updated January 2026, the company says "the current terms present risk for Zillow" and it won't host Matterport media without "clearly defined, public-facing terms that authorize us to do so." Zillow accuses CoStar of having "a history of litigating matters about listing media," including an ongoing copyright infringement lawsuit CoStar filed against Zillow in 2023.
“Verbal promises aren't enough: Zillow wants a binding document, and CoStar refuses to sign.”
This distrust is not unfounded. CoStar has been aggressive in protecting its digital assets. In 2023, it sued Zillow for alleged copyright infringement related to the use of listing images. Although that lawsuit focuses on traditional photographs, it sets a precedent Zillow doesn't want to ignore. For Zillow, accepting a verbal promise from CoStar would be like signing a blank check. The company wants a binding agreement that protects it from future legal action—something CoStar has so far not granted.
By the Numbers
- October 2025: Zillow removed Matterport 3D tours from its website.
- April 2024: CoStar Group acquired Matterport for ~$1.6 billion.
- January 2026: Zillow's last blog update on the conflict.
- 6 months: Time since the removal to Hines' statement.
- 2 platforms: Homes.com and Realtor.com, both CoStar-owned, still display Matterport tours without restrictions.
- ~1 billion: Estimated monthly visits to Zillow, the largest U.S. real estate portal.
Why It Matters
This dispute goes beyond two companies squabbling over licensing rights. It strikes at the heart of the real estate data ecosystem: who controls a property's digital assets. If Zillow caves, it could set a precedent for other portals to demand similar terms, weakening CoStar's control over its content. If CoStar caves, it loses leverage over how its data is used and could face similar demands from other aggregators.
The immediate losers are agents and homeowners who invested in Matterport tours and can't show them on Zillow, the most-visited U.S. real estate portal. According to industry estimates, Matterport has over 2 million properties digitized on its platform, many of which were listed on Zillow before October 2025. Since then, those tours have been orphaned on the largest portal, reducing property visibility and potentially affecting sale prices.
Potential winners are alternative 3D tour providers, like Zillow 3D Home, which have seen increased adoption. Zillow has been aggressively promoting its own 3D scanning tool, which allows agents to create tours directly from the Zillow app. Although Zillow 3D Home's quality doesn't yet match Matterport's, its native integration with Zillow's platform gives it a significant competitive edge.
The conflict also reflects a broader trend: platform consolidation is creating friction over data interoperability. As CoStar amasses assets (Homes.com, Matterport, Realtor.com), Zillow builds its own ecosystem with products like Zillow 3D Home, Zillow Offers, and Zillow Closing Services. Consumers, agents, and brokers get caught in the middle of this platform war, where data portability becomes a strategic weapon.
What This Means For You
If you're a real estate agent, broker, or investor, this affects you directly. The uncertainty over Matterport tours could disrupt your digital marketing strategy and reduce your property exposure.
- 1Diversify your 3D tour providers. Don't rely solely on Matterport. Consider Zillow 3D Home, iGuide, EyeSpy360, or other options that work across multiple portals. Ensure the tours you create can be uploaded to Zillow, Redfin, Realtor.com, and other key sites.
- 2Demand contractual clarity. Before signing up for a tour service, verify that its terms allow use on all portals where you list properties. If the provider doesn't offer written guarantees, look for alternatives.
- 3Monitor the legal outcome. If CoStar signs the pledge, Matterport tours will return to Zillow, benefiting those who already invested in that technology. If not, the market will fragment further, and Matterport tours will be confined to Homes.com and Realtor.com.
- 4Evaluate the cost of switching providers. If you already have a library of Matterport tours, migrating to another platform can be costly and time-consuming. Consider whether it's worth waiting for the dispute to resolve or if switching now is better.
What To Watch Next
The next key move is whether CoStar will sign the executed promise Zillow demands. Hines has made a public declaration, but it's not legally binding. Meanwhile, Zillow continues to accept tours from other vendors and promotes its own 3D Home product. In its latest update from January 2026, Zillow indicated it is "exploring options to allow agents to upload Matterport tours securely," but gave no concrete timeline.
Also watch CoStar's copyright infringement lawsuit against Zillow. That lawsuit, filed in 2023, accuses Zillow of using listing images without permission. If the court rules in CoStar's favor, Zillow could face significant damages and have even less incentive to trust CoStar. Conversely, if Zillow wins, it could strengthen its position in the current dispute.
Another factor to watch is the reaction from agents and brokers. If pressure from Zillow's user base intensifies, both parties may feel compelled to reach a deal. Industry associations like the National Association of Realtors (NAR) could step in to mediate, though they haven't done so yet.
The Bottom Line
The battle over 3D tours is a microcosm of the fight for control over real estate data. Zillow and CoStar are at a stalemate, and agents and homeowners are paying the price. Until one side blinks, the 3D tour market will remain fragmented. The ultimate winner will be whoever realizes that, in the digital economy, trust and contractual clarity are worth more than any verbal promise. For industry professionals, the lesson is clear: diversify and protect yourself contractually—it's the only way to navigate an increasingly polarized ecosystem.
