The events of the past year in the real estate industry may not have been as notable as what happened in 2024, which was filled with commission lawsuit settlements and subsequent changes in industry practice.
However, as the industry entered a new era, power shifts, changing rates, reforms at the National Association of Realtors, technological advances and more made 2025 another big year for real estate.
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The year was characterized by big opinions, power plays and companies that wanted to turn the tide in their favor.
In short, the conditions are setting the stage for a wave of industry change that continues to unfold. What follows are the topics and headlines that shaped 2025.
NAR transitions
Nykia Wright | Credit: AJ Canaria Creative Services and Canva
The leaders of the National Association of Realtors had a big task ahead of them in 2025: repositioning the organization for success after years of tumult that shook confidence among consumers and the real estate community as a whole.
New CEO Nykia Wright led the way this year by reorganizing the association and tightening its finances through layoffs, appointing Jarrod Grasso as senior vice president of industry relations, appointing a new general counsel and chief financial officer, and bringing in Sherry Chris as an advisor on the organization’s turnaround.
NAR also reviewed and revised key policies in 2025, ultimately overturning the “no-mingling” rule amid increased scrutiny from the Department of Justice (DOJ) and introducing a new listing option for members – “deferred marketing exempt listings” – while opting to maintain its clear collaboration policy.
In a show of transparency, the association, at the media’s request, also shared how it spent its money in 2024, painting a picture of the state of affairs before “fiscal discipline” was fully implemented by the new CEO, NAR said.
Mortgage interest
Jerome Powell | Credit: Getty Images and Canva
One of the biggest talking points in the industry this year has been mortgage interest rates and their movements. Federal Reserve Chairman Jerome Powell faced intense criticism from President Trump and his administration as Americans grappled with high prices and economic uncertainty in the wake of new tariff policies that swept the country starting in the spring.
Over the course of 2025, Americans saw short-term interest rates fall three times, ultimately pushing the average 30-year fixed rate down from a high of 7.04 percent in January 2025 to about 6.2 percent at the end of December 2025, the U.S. report said. Federal Reserve Bank of St. Louis.
Despite some gradual declines in interest rates, Americans continued to hesitate on their trades for much of the year as they slowly adjusted to this new, higher interest rate landscape. A wait-and-see attitude also stemmed partly from the Trump administration’s tariff policies, as Americans sought answers about how much their cost of living would shift as a result of the policy, and partly from the ongoing housing shortage across the country.
AI
Credit: Canva
The major language models (LLMs) that began infiltrating the industry in the second half of 2024 continued to do so in 2025, as portals, CRMs, property inspection apps, brokers, mortgage companies and other industry players increasingly adopted these and other AI models.
Realtor.com and Homes.com launched natural language search features this year when Zillow unveiled a controversial integration with ChatGPT. The mega-portal also launched a new AI-powered technology suite later this year, Zillow Pro, which integrates Follow Up Boss, My Agent and Agent Profiles and infuses them with exclusive data and AI capabilities.
Meanwhile, mortgage servicer Rocket unveiled a suite of AI tools in late 2025 that will help mortgage brokers and loan officers automate and streamline processes such as underwriting and creating purchase agreements.
On the CRM side, RealScout this year announced a new AI-based home search for agents that will allow them to provide homebuyers with additional behind-the-scenes insights.
Overall, technological developments in 2025 have shown that AI updates continue to evolve and become more widely adopted, a trend that is sure to continue in 2026.
Private listings
Credit: Canva
One of the biggest debates that continued to polarize the industry in 2025 was the use and promotion of exclusive private listing offices and networks.
Compass in particular remained committed to its network of private listings, creating a physical book of the brokerage’s internal listings in May to complement its online platform. Meanwhile, companies like Douglas Elliman, Corcoran Group and Luxury Presence this year unveiled their own formal private listing platforms, even though Elliman and Corcoran had always helped clients with private listings when requested.
As a result, 2025, especially in the luxury sector, was defined by the formalization of private listing networks in a new way, as companies promoted exclusivity and privacy while also reaping the benefits of keeping more business in-house. Ultimately, the strong views on private listings culminated in two of the biggest legal battles of the year.
Legal battles
Jeremy Wacksman and Andy Florance | Credit: Zillow, AJ Canaria Creative Works, Canva
Compass’ move to make privately marketed listings a core part of its business strategy ultimately led to friction with major industry partners in 2025.
This spring, a legal row between the brokerage and Northwest MLS arose when the MLS temporarily suspended Compass’ IDX feed for about a day in response to the brokerage’s private listings, which violated NWMLS rules. Compass alleged in its lawsuit that the MLS operated in a monopolistic manner and limited consumer choice. The case is still ongoing, as discovery was able to proceed despite NWMLS’ objections, and a jury trial is currently scheduled for October 2026.
Meanwhile, after Zillow unveiled its new listing access standards this spring, Compass sued. The brokerage claimed that Zillow’s new policy was an anti-competitive tactic to “protect its monopoly and revenues.”
As two of the largest players in the industry – Zillow as the largest portal and Compass as the No. 1 brokerage in the US by sales volume – each company has ample resources to fight the legal battle.
After a four-day hearing in November, each company submitted supporting evidence in its favor as the case continues.
Zillow is also defending itself in a copyright infringement lawsuit with CoStar Group, which alleged the portal illegally used thousands of CoStar watermarked images on Zillow rentals and its partner platforms. Following a recent motion by Zillow to move the case from the Southern District of New York to Washington, that lawsuit has now changed venue.
Zillow has argued both that the burden is on landlords to provide Zillow with the right listing photos, and that CoStar’s legal tactics are all part of a manufactured “playbook” to attack Homes.com’s competitors.
Zillow is also at the center of two class action lawsuits, one related to its Flex Agent program and another over alleged steering of its mortgage business. The portal has also been sued by the Federal Trade Commission (FTC) over its $100 million rental syndication deal with Redfin.
M&A
Robert Reffkin | Credit: Canva and Alive coverage for Compass
During a year in which the market was sluggish and the staying power of real estate agents and brokers was tested, a growing number of companies opted to consolidate through mergers and acquisitions.
Compass has undoubtedly set the tone for 2025 by announcing the acquisition of @properties Christie’s International Real Estate in late 2024 in a deal valued at approximately $444 million. But the real estate business didn’t stop there.
The most exciting M&A news of the year came when Compass announced a planned acquisition of Anywhere Real Estate in September in a stunning $1.6 billion deal. If approved by regulators, the deal is likely to close by the end of 2026 and will create a combined force of about 341,000 agents across brokerage and franchise offices. The companies are among the highest-earning companies in the sector in terms of sales volume.
Other major M&A deals this year included Rocket Companies’ $1.75 billion acquisition of Redfin and the mortgage manager’s acquisition of Mr. Cooper Group Inc. for $9.4 billion just a few weeks later.
There were also a handful of M&A rumors that never materialized — including Compass’ alleged acquisition of Berkshire Hathaway HomeServices, which was vehemently denied by the company, and an alleged deal with Anywhere to acquire Douglas Elliman. The latter never got off the ground either, but gave the boutique company’s shares a nice boost while the rumor mill churned. (Both companies declined to comment on the rumors.)
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