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| Getty Images; Rebecca Zisser |
A few years back, Brian Boero and his wife set out to buy a vacation home in Tuscany. The idea was romantic an apartment in a historic Italian city, the perfect indulgence for post-pandemic empty nesters. It was, as Boero put it, a "YOLO" moment. But what should have been a dream quickly unraveled into a frustrating reality.
Boero, the CEO of real estate consultancy 1000Watt, soon realized how fortunate he had been with the U.S. housing system. Though riddled with affordability issues, the American home-buying experience is still light-years ahead of Europe in terms of accessibility. In the U.S., buyers can log onto Zillow or similar platforms and browse nearly all homes for sale, thanks to industry databases that ensure up-to-date, accurate listings. Scheduling a tour or making an offer is straightforward.
Europe offers no such convenience. Real estate platforms are fragmented, frequently outdated, and often duplicate listings from multiple agents each with different prices. Market transparency is limited, and brokers commonly hoard prime listings, making it tough to evaluate whether a deal is good or bad.
In Italy, Boero resorted to walking the streets to peer into brokerage windows. His agent relied heavily on phone calls and word-of-mouth. It felt, as Boero described, like "feeling around in the dark."
Now, Boero and others warn that the U.S. market is inching toward this chaos. Major real estate companies are increasingly leaning into "hidden listings" properties marketed selectively rather than shared widely. Zillow has cracked down, banning listings that aren't promptly posted to its platform. Compass, America’s largest brokerage by sales, retaliated with a federal lawsuit.
This feud could shatter the cohesiveness of the U.S. housing market. Instead of a comprehensive view of listings, buyers may find themselves hopping from site to site or relying on private networks. Ironically, just as foreign markets strive to mimic the U.S. model, American firms seem intent on dismantling it.
"In France, they're laughing at the situation right now," said Paris-based real estate tech executive Ali Attar. "Americans take their system for granted. Once it's gone, it’ll be nearly impossible to rebuild."
America’s real estate efficiency hinges on Multiple Listing Services (MLSs) localized databases that aggregate listings and feed them to search engines like Zillow, Redfin, and Realtor.com. These services ensure market visibility, accuracy, and accountability.
The U.S. MLS model is globally revered but hard to replicate. While some countries have attempted similar systems, most falter due to infighting, lack of regulation, or agents’ unwillingness to share. In Europe, multiple agents often represent a single listing, creating chaos and incentives to conceal properties. Online portals there function more as advertising channels than transparent marketplaces.
Attar emphasizes the need for the "three Vs" in real estate: valuable, visible, and valid listings. American buyers expect all three. In Europe, he says, you're lucky to get two.
Real estate agent Hollin Stafford experienced this firsthand. After over a decade in U.S. real estate, she moved to Portugal in 2016 and described the process as akin to "the Wild West." Market evaluations were difficult due to opaque data and outdated listings.
In September, global real estate leaders will convene in Toronto for the International MLS Forum. While countries like Canada have implemented similar systems, most others are lagging. Resistance often comes from entrenched players big portals and brokers with little incentive to reform.
"It’s a classic tragedy of the commons," said Sam DeBord, CEO of the Real Estate Standards Organization. "Everyone acting in their self-interest can destroy the marketplace."
Recent developments suggest the U.S. is vulnerable. MLSs are governed by industry norms, not laws. Their primary regulator, the National Association of Realtors (NAR), has lost influence amid scandal and lawsuits. Local enforcement is inconsistent, raising fears that the system could fracture.
Compass has been a key disruptor. With over 37,000 agents, it encourages sellers to pre-list homes on its internal platform before going public. The rationale? Public platforms reveal price drops and time-on-market metrics that can hurt perceived value. Compass offers sellers a softer launch and feedback loop.
More than half of Compass sellers now use this phased approach. While 94% of listings eventually make it to the MLS, early access gives Compass clients a competitive edge. If other brokerages adopt similar strategies, buyers will face a fragmented, inefficient marketplace.
The situation mirrors the streaming wars. To watch everything, you now need subscriptions to Netflix, Hulu, Disney+, and others. The convenience of a one-stop shop is gone. If real estate listings follow suit, the home-buying process will become expensive, time-consuming, and opaque.
"Consumers want access to all listings," warned real estate strategist Mike DelPrete years ago. "If some are hidden, eyeballs will follow them."
For now, Zillow remains dominant with 220 million monthly users. But its legal clash with Compass could reshape the industry. Zillow has enforced a one-day rule: any property marketed publicly must be shared with the MLS and Zillow within 24 hours, or it will be banned.
Compass claims this rule suppresses competition and gives Zillow monopoly power. Zillow argues it's protecting consumers from fragmented data and delayed access.
"Everyone has a financial stake here," DelPrete says. Compass wants to expand its footprint. Zillow needs fresh listings to sell advertising leads. Brokers worldwide are watching.
DelPrete recently returned from Europe and noted that the U.S. market drama came up often. "It's a case of the grass is always greener," he said. "The U.S. wants what Europe has, and Europe wants what the U.S. has."
There’s a chance this panic is overblown. The U.S. real estate industry changes slowly. And for all its flaws, Zillow is too powerful to ignore.
Yes, MLSs are imperfect. They’re messy, fragmented, and sometimes manipulated. Australia’s auction system and centralized search platforms offer intriguing alternatives. But the U.S. setup still allows for unprecedented transparency and access.
Ultimately, buyers want a marketplace that's easy to use and offers the full picture. That simplicity is what Boero missed in Italy. Though he eventually bought a home, the experience was so opaque he still doesn’t know if he got a good deal.
"We talk about this a lot in the industry," Boero says. "Let’s not destroy something so special. Just look at the rest of the world and how broken it is."
