In
a
call
with
investors
and
analysts
Tuesday
evening,
CoStar
Group
founder
and
CEO
Andy
Florance,
highlighted
many
of
the
notable
results
achieved
by
the
Homes.com
network
during
the
last
year.
Among
these
achievements
was
site
traffic,
with
the
network
recording
over
 2.1
billion
views
and
100
million
average
monthly
unique
visitors
in
2025,
according
to
Comscore
data.
Executives
added
that
in
January,
organic
traffic
was
up
134%
year-over-year
and
21%
month-over-month,
marking
an
all-time
traffic
high. 

“We
feel
we
have
achieved
a
good
balance
between
SEM,
SEO
and
direct
traffic,”
Florance
said.
“This
allows
us
to
optimize
SEM
for
quality
traffic
and
leads,
not
just
pure
quantity.”

Illustrating
this,
Florance
noted
that
session
duration
rose
nearly
a
minute
annually
to
roughly
four
minutes
and
30
seconds,
while
the
bounce
rate
dropped
from
63%
in
January
2025
to
41%
in
January
2026. 

Additionally,
Florance
noted
that
lead
volume
was
up
48%
annually
in
January
2026,
while
lead
volume
for
Homes.com
member
agents
was
up
187%
annually,
with
subscribers
paying
to
promote
216,000
active
listings,
roughly
9%
of
all
homes
for
sale
in
the
U.S.
in
Q4
2025. 

“We
now
have
over
31,000
agent
subscribers,
generating
$100
million
in
annualized
revenue
run
rate,
with
76%
of
them
on
annual
contracts,”
Florance
said.
“For
CoStar,
this
is
the
fastest
organic
revenue
build
we’ve
ever
had
for
a
new
product,
we’ve
achieved
this
revenue
level
faster
than
our
U.S.
competitors,
years
faster.
We
have
built
a
dedicated
sales
force
of
600
sales
reps
to
reach
the
top
750,000
agents
in
the
business.”

A
clear
path
to
drive
profitability
with
Homes.com

Looking
ahead,
based
on
the
success
of
Apartments.com,
Florance
said
he
believes
Homes.com
can
generate
$4.75
billion
of
revenue
and
$2.85
billion
of
EBITDA
within

the
next
13
years. 

“Apartments.com
has
a
very
similar
business
model
to
Homes.com
and
grew
revenue
initially
at
a
measured
pace,
but
now
over
13
years,
has
reached
$1.2
billion
of
revenue
run
rate
with
very
high
margins.
The
growth
of
apartments
and
homes
looks
very
similar
at
this
point.,”
he
said. 

Florance
also
reiterated
that
CoStar
is
reducing
its
net
investment
in

Homes.com
by
$300
million
in
2026,
as
the
company
aims
for
run
rate
profitability
in
2029
and
full
year
profitability
in
2030. 

“We
have
a
clear
path
to
accelerate
top-line
growth
and
drive
profitability,”
Florance
said.
“Competing
U.S.
real
estate
portals
suffer
from
a
lack
of
profitability
and
low
growth,
not
because
there’s
MLSs
in
the
U.S.,
but
because
they
have
chosen
an
inferior
business
model.
In
contrast
to
Homes.com,
our
U.S.
competitors’
primary
business
model
is
to
sell
lower
value
buyer
agency
leads
to
a
much
smaller
audience,
rather
than
marketing
the
valuable
homes.
Selling
buyer
agency
leads
became
their
primary
business
model
when
their

iBuying
business
models
failed
spectacularly.” 

AI
product
is
“best
in
class”

Florance
also
highlighted
his
firm’s
recently
launched

Homes
AI
product,
which
he
said
he
believes
is
“the
best-in-class
and
first
fully
integrated
proprietary
vertical
real
estate
application
built
upon
the
best
strengths
of
the
leading
LLMs.”

“We
strongly
believe
Homes
AI
will
drive
higher
engagement,
support
significant
growth
in
organic
traffic
and
contribute
to
a
meaningful
increase
in
agent
subscriptions.
Homes
AI
is
either
conversational
or
text
interface
with
a
highly
intelligent
artificial
intelligence
real
estate
expert
that
guides
the
homebuyer
through
the
search,
exploration,
comparison
of
homes,
communities
and
valuations,”
he
said.
“In
the
first
week
post-release,
Homes
AI
is
having
a
huge
impact
on
user
engagement.
Site
visitors
that
hit
the
AI
mode
are
on
the
site
for
16
minutes,
50
seconds,
as
opposed
to
four
minutes,
24
seconds
for
non-users.
AI
users
do
nearly
four
times
as
many
searches,
favorite
seven
times
as
many
properties,
look
at
four
times
as
many
properties
and
submit
seven
times
as
many
email
leads.” 

Florance
reiterated
that
CoStar
plans
to
deploy
this
technology
to
its
other
platforms,
a
move
he
believes
will
“result
in
substantial
competitive
advantage
for
CoStar
Group
for
years
to
come.”

“CoStar
Group
is
emerging
as
a
clear
winner
in
the
artificial
intelligence
era,”
Florance
said.
“We’re
positioned
to
take
a
transformative
share
with
the
advantage
Homes
AI
gives
us.
We
are
using
AI
to
cut
significant
costs
and
improve
our
product
offerings
and
quality.
We’re
launching
new
transformative
products
that
would
not
have
been
feasible
without
our
AI
innovation.”

Additionally,
Florance
explained
how
he
feels
the
success
of
Homes.com
will
fuel
growth
across
the
company,
especially
when
it
comes
to
Apartments.com. 

“Homes.com
is
our
essential
gateway
to
reach
the
single-family
rental
market.
In
addition,
just
over
half
of
all
renters
begin
their
home
shopping
journey
open
to
renting
or
buying.
Apartments.com
needs
Homes.com
in
order
to
bring
those
considering
buying
into
the
top
of
the
rental
funnel
on
one
of
our
platforms,”
he
said.

While
Florance
did
not
directly
address

the
letters
sent
by
activist
investors
to
CoStar
regarding
Homes.com
earlier
this
year,
he
highlighted
his
confidence
and
belief
in
what
he
and
his
team
are
building
at
CoStar. 

“The
results
and
the
plan
you
heard
today
reflect
what
CoStar
has
always
done.
Build
durable
platforms
on
proprietary
data,
run
them
with
discipline
and
compound
long-term
shareholder
value,”
he
said.
“We’ve
strengthened
our
governance
and
capital
allocation
oversight,
we’re
matching
strategy
with
clear
financial
priorities,
profitable
growth,
expanding
adjusted
EBITDA,
and
returns
of
capital.
We’re
scaling
Homes.com
because
it
strengthens
our
entire
real
estate
ecosystem
globally
and
the
completeness
of
our
data,
we’re
doing
it
with
a
clear
investment
glide
path.”