Opendoor Technologies Inc. (OPEN) and Zillow Group, Inc. (ZG) are navigating a challenging U.S. housing market, where the 30-year fixed mortgage rate has exceeded 6% since March 2026, contributing to a significant decline in homebuyer demand. Existing home sales are nearing a 30-year low of approximately 4 million units annually, roughly 20% below pre-pandemic averages.
In Q2 2026, Opendoor reported revenues of $883 million, down 43.7% year-over-year, and a net loss of $162 million, compared to a $29 million loss the previous year. In contrast, Zillow’s revenues rose 18% year-over-year to $772 million, with Rentals revenues climbing 31% and Mortgages expanding by 75%, despite a net loss of $4 million in the same quarter.
Looking ahead, Zillow anticipates Q3 2026 For Sale revenue growth of just 5-7%, while Opendoor’s contribution margin is expected to drop to 4-4.5%. Zillow’s trailing 12-month return on equity stands at 9.85%, significantly higher than Opendoor’s negative returns, indicating its stronger operational efficiency. Analysts suggest Zillow may be the better investment choice due to its diversified revenue streams and resilience in a subdued housing market.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
