Real estate FTC probe urged by Warren and Booker

Two Democratic senators are urging the Federal Trade Commission to investigate what they call anticompetitive and deceptive practices in the online real estate marketplace, arguing that the industry is deepening the nation's housing affordability crisis. In a letter sent Thursday to FTC Chair Andrew Ferguson, Senators Warren and Booker asked the agency to use "every enforcement tool available to restore competition to the entire online real estate marketplace." The real estate FTC push comes as the national median home price has reached an all-time high of about $434,900.

Real estate FTC letter targets three practices

The real estate FTC letter identifies three practices the senators say warrant investigation. First, "contact agent" buttons on listing platforms that appear to connect buyers with the listing agent but may instead route inquiries to platform-affiliated agents who remit a share of their commission back to the platform — without disclosing the arrangement to buyers. Second, steering of buyers to affiliated mortgage lenders that charge higher rates and impose worse loan terms, again without disclosure. Third, private listings that show homes to a select few buyers before they reach the public market.

The Warren and Booker letter cited a median monthly mortgage payment of $2,199 consuming nearly 25 percent of median monthly income, tying the practices to the housing affordability crisis. "Today, too many people are locked out of the American dream of homeownership," the senators wrote. No companies were specifically targeted in the letter, but its footnotes include media coverage of Zillow and Compass. The outcome of the real estate FTC pressure campaign remains uncertain, as Zillow has denied that its services hurt buyers.

Real estate FTC scrutiny follows Zillow-Redfin settlement

The real estate FTC letter follows an Aug. 24, 2026, stipulated order in which the FTC required Redfin to reenter the online rental market after Zillow paid the company $100 million to shut down its internet rental listing service. Booker called that real estate FTC settlement a step forward for renters and urged the commission to apply the same scrutiny to the home-buying market.

The real estate FTC call also echoes bipartisan concern in Congress. In June, Rep. Ben Cline, R-Va., asked Ferguson to investigate online agent referrals and mortgage lending practices, HousingWire reported. The real estate FTC letter was signed by Booker, the ranking member of the Senate Judiciary antitrust subcommittee, and Warren, the ranking member of the Senate Banking Committee — and the Warren and Booker push has added momentum to the housing affordability crisis debate on Capitol Hill.

The senators' letter lands amid a broader reexamination of how homes are bought and sold in America. Federal enforcers and private plaintiffs have targeted real estate firms in recent years with antitrust claims alleging collusion to inflate broker commissions and restrict listing visibility. The FTC's August action against the Zillow-Redfin arrangement showed the agency is willing to intervene in the online marketplace — and the senators want that scrutiny extended to the practices shaping every home purchase.

The senators argue that dominant digital platforms and large brokerages use market power to raise fees, commissions and borrowing costs while reducing transparency in how homes and mortgage referrals are marketed. They also criticized brokerage private-listing practices that show homes to select buyers before public marketing, arguing that sellers get fewer offers when fewer people know a home is for sale.

Booker and Warren serve as the ranking Democrats on the Senate's antitrust and banking panels, respectively, giving the letter institutional weight even without Republican signatures. For now, the FTC has not said whether it will open a formal investigation into the practices the senators flagged.