Coronavirus Economic Impact: Zillow Halts Home Buying Amidst Global Pandemic

Another business has suspended a part of its business in response to the economic decline from the coronavirus. On Monday, Zillow, an online real estate service, announced that it would be suspending home buying for the foreseeable future in 24 markets across the U.S.

“Given the concerns for public safety and rapid developments by governments that restrict local real estate activities, we determined it was prudent to pause our home buying to preserve our capital,” Rich Barton, CEO of Zillow, said in a statement.

While suspending its own acquisitions, Zillow will continue to allow users to sell their homes through its “Zillow Offers” service. The tech company has also halted plans to expand “Offers” to more markets. All open houses conducted by or through the company have also been canceled at operating markets.

Zillow’s inventory of properties for sale has declined sharply over the course of 2020, likely due in part to the spread of the COVID-19 pandemic. As of Thursday, the company reportedly had an inventory of 1,860 homes, down 31% from the 2,707 it had at the end of 2019.

Real estate companies are among the types of businesses considered non-essential by regions of the U.S. that have put emergency shutdowns in place to slow the spread of coronavirus. This includes states like California, Illinois, Louisiana, Ohio, New York and Nevada.

“We have a strong balance sheet and cash position, and are taking proactive steps to reduce spending to offset the important financial support we’re giving our industry partners so we may continue to best serve our mutual customers,” Barton continued in his statement.