Zillow's CEO Jeremy Wacksman describes the current housing market as 'bouncing along the bottom,' with only marginal improvements expected in 2026. Amid these challenges, the company is increasingly integrating artificial intelligence to safeguard its position and transform home searches. Wacksman views AI as 'an ingredient rather than a threat.'
The real estate sector faced a tough year in 2025, marked by dismal conditions that persisted into early 2026. Zillow CEO Jeremy Wacksman noted in a recent interview that existing home sales totaled 4.1 million last year, well below the normal range of 5.5 to 6 million. January 2026 saw a historic drop in home sales, suggesting that even modest recovery hopes might be optimistic.
Despite broader industry struggles, Zillow has outperformed its peers. The company's valuation stands at a quarter of its 2021 peak, yet Wacksman emphasized that Zillow is faring better overall. On the earnings front, Zillow reported increased revenue for the previous quarter, announced shortly after the interview. However, the stock price dipped nearly 5 percent the following day.
In this stagnant market, Zillow is leaning heavily into artificial intelligence. Wacksman sees AI not as a disruptive force but as a supportive element that can help maintain Zillow's market share while innovating how users find homes. Keywords associated with the company's strategy include housing, artificial intelligence, Google Gemini, ChatGPT, and real estate. This approach comes as the housing market shows no signs of a strong rebound, with Zillow positioning itself for long-term adaptation.
