Real estate stock prices have taken a big hit in the past year
Some companies have seen their share prices drop by 30% — or more — over the past year amid sluggish housing market conditions and ongoing economic uncertainty.
Key points:
- CoStar and Zillow stocks have seen some of the biggest drops over the past year, with the share value for each falling by about half.
- Meanwhile, Opendoor and Offerpad — which entered meme stock territory last summer — have seen their stocks move in different directions.
- While many investors have concerns, some see opportunity ahead — particularly with Zillow and CoStar in the wake of the companies’ recent pre-market listings announcements.
The housing market's continued sluggishness is proving to be a drag on stock values for real estate companies, with many taking a beating over the past year.
Even before the war in Iran started in late February, many real estate stock values were bouncing around 52-week lows.
But real estate stocks aren't alone in suffering losses. While up 11% at the start of the second quarter compared to Q2 of 2025, the Dow Jones Industrial Average has fallen from 50,188 to around 46,600 in the past month.
How real estate stock prices have changed
From a dollar-value standpoint, CoStar and Zillow have seen some of the most significant declines. Since hitting nearly $97 a share last August, CoStar was trading in the $40 range at the start of the second quarter. Zillow, which ranged around $86 a share last September, is also now trading around $40.
Percentage-wise, real estate stocks have been volatile in both directions. Among the most turbulent: the so-called meme stocks of Opendoor and Offerpad, which both experienced sudden surges last summer.
The two iBuyers, both of which faced delisting threats last year, have seen their stock prices go in different directions. At $4.75, Opendoor's share price is up 375% compared to this time last year, while Offerpad is down 57%, trading at around 72 cents per share. Offerpad recently received a new warning that it is at risk of being delisted from the New York Stock Exchange — the company's second such warning in 11 months.
Meanwhile, some brokerages have seen share prices drop in the past year, including eXp (down 39%), The Real Brokerage (down 37%), REMAX (down 32%), Compass (down 16%) and Douglas Elliman (down 8%).
But the share price for Rocket Companies, which acquired Redfin a year ago, is up 14% year-over-year.
Economic factors fueling investor pessimism
With home sales hovering around 30-year lows in 2024 and again in 2025, investors may be pessimistic about the chances for a rebound in 2026.
After briefly dipping below 6% in February for the first time in over three years, the 30-year fixed-rate mortgage has bounced back up into the 6.5% range. With home prices persistently high and some economists warning that sub-6% rates may not return in time for the spring homebuying season, would-be buyers may choose to stay on the sidelines during what is typically the housing market's busiest time of the year.
Some companies facing investor criticism, lawsuits
Though much of the pessimism and uncertainty surrounding real estate stocks can be tied to the downbeat market, some companies are dealing with more specific challenges.
Over the past few months, CoStar has faced criticism from investors over the company's strategy for Homes.com. CoStar has repeatedly addressed those concerns, most recently by accusing some investors of creating a "false narrative" and engaging the services of an outside law firm with experience in "defamation matters" and "reputational attacks."
Meanwhile, Zillow has in the past year been tangled up in various lawsuits involving its Listing Access Standards, copyright violation claims and allegations of steering. While these lawsuits have investors "slightly concerned," Stephen Sheldon of William Blair said investors are "incrementally encouraged" by Zillow's new product capabilities, including the pre-market listing feature that the company unveiled last month.
"We would look to be more constructive on shares in an environment offering more visibility into a broader housing market recovery," Sheldon wrote in a recent report, adding that a recovery "is unlikely to happen" in the next six months.
When it comes to CoStar, Sheldon is also encouraged by what the company is doing with Homes.com and its recent pre-market listings deal with eXp.
Homes.com "is now able to compete in premarket listings, with the potential to drive listing differentiation and corresponding traffic on the portal," Sheldon wrote in a March report.
CEOs still prioritizing agent retention
When the housing market was hot, real estate companies' earnings reports contained a lot of details on agent growth and retention. But that's a tougher conversation now. Nearly four years into an industry recession, many agents are leaving their jobs to retire or to find opportunity in a new career.
However, agent retention remains on the minds of many brokerage leaders. In a company earnings update covering data from Q4 of 2025, eXp Realty CEO Leo Pareja said that after significant attrition in 2024, 2025 became "a defining year for eXp as we enhanced agent productivity and retention," with the company tallying 83,060 agents by year's end.
"In 2026 we expect to translate those investments into margin through disciplined execution," Pareja told investors.