CoStar and Zillow battle over Matterport tours

by Don Hazelwood

October 28th, 2025

If you’ve been following real estate news lately, you’ve probably seen the headlines: Zillow just pulled all Matterport 3D tours from its listings. This is more than just a corporate disagreement, it affects how everyone involved in Real Estate Services showcase properties, how buyers experience listings, and ultimately how agents get results.

Let’s break down what’s happening, why it matters, and what it means for those in Real Estate Services.

What’s Going On

First, let’s talk about the scale here, because this isn’t a small fight. The U.S. real estate services market is worth close to $200 billion today and is expected to grow to around $285 billion within the next seven years. Both Zillow and CoStar are major players in that market, and both want to control how listings, and the media that goes with them are presented online.

Earlier this year, CoStar, the parent company behind Homes.com, Apartments.com, and LoopNet, bought Matterport for $1.6 billion. If you’re not familiar with Matterport, it’s the industry leader in 3D virtual tours. Photographers like me rely on it to create immersive digital walk-throughs that let potential buyers experience a home as if they’re standing in it.

With that acquisition, CoStar now owns the platform that most Real Estate Photographers use to create and host 3D tours. And that’s where the tension starts.

Zillow recently announced that CoStar did not renew their API agreement, the technical connection that allows Matterport tours to automatically display within Zillow listings. Without that API link, those virtual tours no longer appear on Zillow’s platform.

Zillow’s response was swift: it removed every Matterport tour from its site.

Now, both sides are blaming each other. CoStar claims Zillow is misrepresenting the situation, while Zillow says CoStar is intentionally walling off data to gain a competitive edge. No matter who’s technically right, the end result is the same, agents can’t show Matterport tours on Zillow at this time, and everyone else is left scrambling.

What It Means for Agents and Photographers

For real estate agents, this is more than just an inconvenience, it’s a direct hit to their marketing ROI. Agents spend good money hiring photographers and videographers to create high-quality media. The entire point is to make their listings stand out on the biggest platforms.

When Zillow removes Matterport tours, all that investment loses some of its impact. A listing that used to have a beautiful, interactive walk-through now looks flat compared to what buyers have come to expect.

For photographers, this creates new challenges overnight. Matterport has long been the gold standard for immersive, high-resolution 3D experiences. Buyers love it because it’s intuitive and realistic. Agents love it because it keeps potential buyers engaged longer and helps properties sell faster.

Now, we have to adjust quickly. That means:

• Creating different versions of tours for different platforms.

• Using Zillow’s own 3D Home app when listings require it.

• Helping clients understand which platforms support which media formats, and how that affects visibility.

It’s extra work and extra communication, but adaptability is part of surviving in a fast-moving industry like real estate marketing.

And to be honest, it is an opportunity. Disruption always drives opportunity. If you were only providing Matterport tours, now is a time to explore alternatives.

The Bigger Picture

This isn’t just a technical issue, it’s a control issue.

Zillow and CoStar are competing head-to-head for dominance in the same online real estate marketplace. Both companies want to be the destination where buyers browse and agents advertise. Unfortunately, when two giants battle for control, the people in the middle;  agents, photographers, and home sellers are the ones who lose.

Innovation slows down. Access gets restricted. And the tools we rely on to tell the story of a home get caught in the crossfire.

This situation also serves as a reminder: don’t build your business entirely around one platform or product. When a company changes its terms, pricing, or partnerships, you’re the one left scrambling to pick up the pieces.

That’s why real estate photographers need to stay flexible. Relying on just one system or ecosystem is never a good idea. Remember the old saying about all of your eggs in one basket? The end goal in Real Estate Services such as photography is to give clients options that fit their marketing strategy, not just one company’s rules.

Moving Forward

Despite all the drama, Matterport is still an incredible tool. It continues to set the standard for quality and realism in 3D tours. Most photographers will keep using it for the majority of projects.

But going forward, also make sure clients clearly understand where their tours will (and won’t) appear. If a property is going on Zillow, there may be a need to use Zillow’s 3D Home instead. If it’s for the MLS or a brokerage site, Matterport might still be the better choice. 

It’s all about managing expectations and staying proactive.

This entire episode is a good reminder that in real estate marketing, control matters, both for agents and for those of us who create the visuals. We work hard to help agents tell the story of a home through our photos, videos, and tours. That story shouldn’t be rewritten or limited because two companies can’t agree on how to share content.