Zillow, Opendoor and Compass make Fortune 500 debuts

The companies all debuted within a few slots of established player Realogy and highlight both the role of technology in real estate and the rise of bitter rivalries.

In news likely to stoke the fires of real estate’s biggest rivalries, Zillow, Opendoor and Compass all debuted on the prestigious Fortune 500 list on Monday.

The list, which ranks companies by revenue, awarded Zillow the 424th spot. iBuying giant Opendoor was one place behind at 425, while Compass scored 495th. The triple debut comes after two explosive years in the housing market, with prices soaring and record sales across the United States, and highlights the ascendancy of the real estate sector in general.

In the case of Opendoor and Compass, their listing also comes shortly after the companies go public. Opendoor made its stock market debut in late 2020, while Compass began selling shares in spring 2021.

Landing on the list also puts the corporate trio in rare company. The only other dedicated brokerage firm on the list was Realogy, which earned the 427th spot. The listing refers to the parent company of brands such as Coldwell Banker and Corcoran as Realogy, although the company changed its name to “Anywhere” earlier this month.

Having a trio of tech companies now stand side-by-side with Anywhere will likely only intensify the already bitter rivalries within the company. In particular, Anywhere and Compass are currently locked in a lawsuit, with the former accusing the latter of engaging in “illegal schemes” to gain market share. Compass has also drawn the ire of other real estate companies for, among other things, its aggressive recruiting tactics.

Despite the lawsuits, Compass has continued to grow rapidly and less than a month ago dethroned Anywhere (then still called Realogy) at the top of the prestigious Mega 1000 ranking of real estate companies by sales volume.

Rivalries involving Opendoor, Zillow, and other industry players also exist. Buyers, for example, have become a source of anxiety in some corners of the agent community. And Zillow’s latest big moves — including its acquisition of ShowingTime and the shutdown of its iBuying operations — have been among the biggest and most polarizing real estate events in recent memory.

Although Zillow, Opendoor, and Compass all operate using very different business models, the one thing they have in common is that they all market themselves as technology-driven real estate companies. These companies have recently taken a beating on the stock market, but Monday’s Fortune 500 news shows that despite weak stock prices, they have continued to engulf more and more of the real estate sector. Their new rankings also suggest a prominent role for technology in real estate. Zillow is also involved in a lawsuit right now with discount brokerage REX Real Estate.

It should also be noted that all three companies are large and centrally managed; none of the three Fortune 500 real estate newcomers are franchisors, for example.

Although brokers were rare on the latest Fortune 500, other housing companies ranked include homebuilder Lennar, which landed in 131st place, and investment firm Blackstone at 159. Berkshire Hathaway, a massive conglomerate that, among many other interests, is the parent of Berkshire Hathaway HomeServices, earned the 7 spot on the list.

News Corp, owner of Realtor.com’s parent company, Move Inc., ranked 374th. Expedia, which owns short-term rental platform Vrbo and was co-founded by Zillow’s Rich Barton, was ranked 404th on the list

The list also ranked Fannie Mae No. 33 and Freddie Mac No. 56.

Inman has reached out to Zillow about its Fortune 500 debut and will update this story with any response the company provides.

Carrie Wheeler

In an email to Inman, Opendoor’s chief financial officer, Carrie Wheeler, said “to make our Fortune 500 debut after our first year as a public company is a prestigious honor.”

“Since our inception in 2014, we have been committed to reinventing the process for the millions of consumers who buy and sell a home each year and to modernizing the real estate industry,” she added. “This recognition is a testament to the hard work and dedication of our team members over the years and we thank them for always putting our customers first.”

Robert Reffkin

In a statement Monday morning, Compass CEO Robert Reffkin – who founded the brokerage firm in 2012 – said the firm’s tens of thousands of agents and employees have helped it join the Fortune 500 ” so early in our journey”.

“This honor confirms our belief,” added Reffkin, “that equipping the nation’s best agents with the most advanced technology platform in the industry is the best way to deliver an exceptional experience for every home buyer and seller.” .”

Update: This post was updated after posting with additional information from the latest Fortune 500 rankings and with a statement from Opendoor.

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