Real

America's housing affordability crisis has already pushed millions of buyers to the sidelines. Inventory is tight, mortgage rates are still elevated, and home prices continue to squeeze middle-class families. Now, critics are asking whether the real estate industry's newest listing strategies are making it even worse.
Compass International Holdings, the nation's largest brokerage after completing its <a href="https://investors.compass.com/news/news-details/2026/Compass-and-Anywhere-Real-Estate-Begin-a-New-Chapter-as-One-Company-Built-for-Real-Estate-Professionals/default.aspx" rel="noopener noreferrer nofollow">$1.6 billion acquisition of Anywhere Real Estate</a> in January 2026, creating a network of roughly 340,000 agents, is facing growing scrutiny over its push toward private listings and off-market inventory strategies that critics say reduce transparency and limit equal access to available homes.
The debate intensified this week after <a href="https://therealdeal.com/chicago/2026/05/12/zillow-sues-chicago-mls-and-compass-in-over-private-listings/" rel="noopener noreferrer nofollow">Zillow filed a federal antitrust lawsuit</a> against Compass and MRED, the MLS operator serving the Chicago area, alleging anti-competitive behavior tied to private listings and listing access policies.
While the lawsuit focuses on industry competition, the broader concern runs much deeper. Critics argue that restricting public access to listings could further worsen an already brutal affordability environment.
<h2 id="the-rise-of-a-two-tiered-housing-market">The rise of a two-tiered housing market</h2>
At the center of the controversy is <a href="https://www.thestreet.com/real-estate/compass-ceo-sparks-controversial-change-rattling-u-s-housing-market" rel="noopener noreferrer nofollow">Compass CEO Robert Reffkin's</a> promotion of private-exclusive listings and delayed public marketing. Under Compass' model, homes can initially be marketed within Compass' own network before becoming broadly visible on public platforms like Zillow.
Critics say the approach creates a fragmented housing system where inventory becomes less transparent, especially for first-time buyers and consumers without insider brokerage connections.&nbsp;
<a href="https://www.buffalo.edu/news/ub-in-the-news/2026/04/011.html" rel="noopener noreferrer nofollow">Analysts at the University of Buffalo</a> warned the strategy could eventually produce a two-tiered market where well-connected buyers see inventory before the general public ever does.
In a <a href="https://www.cnn.com/2026/04/26/business/robert-reffkin-risk-takers" rel="noopener noreferrer nofollow">CNN interview</a> in April, Reffkin called publicly visible price reductions and days-on-market data a "killer of value," arguing it arms buyers with too much negotiating leverage. He went further, saying he does not believe buyers have "the right to know days on market and price drop history."
That framing drew sharp criticism. Opponents say those data points are among the few tools buyers have to gauge fair market value — and that eliminating them tilts the playing field further toward sellers and the brokerages representing them.
<h2 id="follow-the-money-the-brokerage-double-dip">Follow the money: the brokerage 'double dip'</h2>
The financial incentive behind private listings is straightforward.
Internal Compass documents <a href="https://consumerpolicy.org/wp-content/uploads/Compass-Market-Report-4.15.26.pdf" rel="noopener noreferrer nofollow">surfaced by the Consumer Policy Center</a> show that off-market transactions result in a single agent representing both the buyer and seller — known as "double-ending" a deal — 72% more often than traditional on-market sales.&nbsp;
By keeping listings within its network, Compass increases the odds that its agents handle both sides of the transaction, keeping the entire commission in-house.
That's a problem for buyers. In a double-ended deal, the buyer loses their only independent advocate. The listing agent's fiduciary duty belongs to the seller first.&nbsp;
As <a href="https://www.ramseysolutions.com/real-estate/how-much-does-a-real-estate-agent-cost#authorbio" rel="noopener noreferrer nofollow">personal finance expert Rachel Cruze</a>, co-host of The Ramsey Show, wrote recently: a dedicated buyer's agent guides you to the right home, spots red flags so you don't overpay, negotiates in your interest, and catches homes you might otherwise overlook. A seller's agent handling both sides of the deal is not doing that.
Compass has previously said it does not track or encourage double-ending as a business goal. But the numbers tell a different story — and the Consumer Policy Center report, based on 5,000 recent home sales across Boston, Washington D.C., Chicago, San Diego, and Austin, found the combined Compass entity now holds between 30% and 39.5% of unit sales across all five markets studied.
<h2 id="the-lawsuit">The lawsuit</h2>
<a href="https://www.housingwire.com/articles/zillow-mred-compass-lawsuit/" rel="noopener noreferrer nofollow">According to reporting</a> surrounding the Zillow lawsuit, the complaint alleges that MRED and Compass enacted an unlawful boycott after Zillow suppressed Compass listings in Florida, Georgia, and California.&nbsp;
On May 5, MRED threatened to cut off Zillow's listing feed entirely. Three days later, Compass terminated all of its direct listing feeds with Zillow — cutting off access to more than 25% of current listings in Chicagoland.
The lawsuit alleges efforts to pressure listing platforms into accommodating private inventory strategies while limiting broader public visibility into available homes. Opponents argue those tactics risk undermining decades of progress toward a more transparent and accessible housing market.
<h2 id="the-irony">The irony</h2>
Technology-driven brokerages spent years branding themselves as innovators focused on improving access, efficiency, and transparency in real estate.&nbsp;
But critics now argue that some of the industry's newest strategies are pushing the market in the opposite direction — creating greater exclusivity, reduced visibility, and less consumer access during one of the most difficult affordability environments in modern history.
Compass maintains that its approach benefits sellers and gives homeowners greater control over how their properties are marketed.
But the tension is hard to reconcile. In a market where limited inventory has already fueled intense competition and continued price increases, making homes harder to find doesn't solve the affordability crisis. It deepens it — and the only clear winner is the brokerage collecting both sides of the commission.

Compass is keeping homes off the open market. Critics say it's making the housing crisis worse.

Table of Contents

TheStreet Roundtable

Other articles published on May 15, 2026

Join our free newsletter for daily crypto updates!