Zillow (based in Seattle) has announced it is closing its home-flipping business and laying off 25% of its staff. Price increases have begun cooling in many housing markets and Zillow was forced to sell many homes at a loss, in addition to having trouble finding contractors to handle quick fixes for their properties. Supply chain issues also created challenges for the business. Zillow Offers started up in 2018, but has never been a profitable business. Zillow lost about $80,000 for each home they bought, according to The Seattle Times.
Frankly, I am happy this business model is leaving Real Estate. It was an unhealthy aspect of the business I love.