06/19/2026
In 2021, Zillow launched an ambitious plan: use AI to predict home values, buy houses at scale, and flip them for a profit.
At one point, the program had purchased roughly 7,000 homes.
Then Zillow shut it down after reporting losses of approximately $881 million.
Does that mean Zillow estimates are useless? Not necessarily.
A Zestimate can be a helpful starting point. But real estate is local, and home values are influenced by a lot more than square footage, bedroom count, and recent sales. Condition, location, views, upgrades, floor plan, and buyer demand can all impact value.
That's why many homeowners are surprised when their Zestimate doesn't match what their home actually sells for.
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